Revisors uafhængighed og revisionskvalitet: Betydningen af tvungen firmarotation og adskillelse af revision og ikkerevisionsydelser

Simone Lindkvist Sørensen & Signe Holck Andersen

Student thesis: Master thesis

Abstract

The purpose of this thesis is to investigate the influence of Regulation 537/2014 on auditor independence and audit quality. Regulation 537/2014 regulates mandatory audit firm rotation and separation of audit and non-audit services. The current thesis focuses on the users of accounting information and examines to which extent the new regulation will add value for this group in terms of increased confidence in the audit, as well as more accurate financial statements. The auditor's role in society is to insure that the different stakeholders have confidence in the audited financial statements. Auditor independence is regulated in Revisorloven and is built on a principle-based approach, which means that the auditor largely has to assess his own independence. According to the European Commission, the current regulation is not sufficient to ensure auditor independence. Therefore they have published Regulation 537/2014, which according to the European Commission will lead to increased auditor independence and increased quality in the auditors’ work. The publication of the Green Paper and Regulation 537/2014 has caused great debate. Especially auditors and Public Interest Entities are opposed to the new rules, as they believe that it will affect the audit quality in a negative way. At the same time, they do not believe that there is evidence claiming, that the new rules will increase the independence of the auditors. They believe that the current regulation is sufficient. To examine whether Regulation 537/2014 will lead to increased auditor independence and increased quality in the auditors’ work, interviews have been conducted. Along with the conducted interviews and the relevant studies, this will provides the basis for the analysis and discussion. The conclusion is that both mandatory audit firm rotation and separation of audit and non-audit services will have limited effect on independence in mind, but will however have a positive effect on independence in appearance. In relation to audit quality, the conclusion is that there is a risk of losing knowledge when implementing the new rules. This should however be counterbalanced by the fact that the auditor is required to obtain an understanding of the company and its surroundings before signing the financial statements. The consequences will therefore not be lower quality, but rather increased costs. The analysis and discussion in the thesis further shows that confidence in the auditor will be increased by the new regulation, which is due to a strengthened independence of appearance.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2015
Number of pages161