The Impact of Audit Independence on Transparency and Accountability in Financial Reporting: A Study on Indian Corporates
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The Impact of Audit Independence on Transparency and Accountability in Financial Reporting: A Study on Indian Corporates
Authors:
Rucha Pandya, Amity Business School, Amity University Chhattisgarh
DR. Niranjan Deo Pathak, Assistant Professor, Amity Business School, Amity University Chhattisgarh
Abstract: In today’s increasingly complex and dynamic corporate environment, the credibility of financial information is vital for stakeholders. Transparency and accountability in financial reporting depend significantly on the independence of auditors who evaluate and verify financial statements. This study examines the relationship between audit independence and financial reporting quality in Indian corporates, exploring how unbiased auditing enhances transparency and promotes accountability.
Using a quantitative research methodology supported by primary data from surveys and secondary data from corporate reports and literature, the study analyzes how independence in the auditing process can influence financial integrity. The findings
suggest that audit independence significantly contributes to better financial disclosures, increased investor confidence, and reduced financial manipulation.
However, challenges such as auditor-client relationships, lack of regulatory enforcement, and unethical corporate governance practices continue to hinder the effectiveness of audit systems. The research concludes by recommending stricter enforcement of audit regulations, greater professional autonomy, and the inclusion of ethical training in auditor certification programs.
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