Auditor independence and financial fraud: Unraveling the connection

This study explores the critical character of auditor independence in preventing and detecting financial fraud within corporate governance frameworks. By analyzing the connection between auditor independence and instances of financial misconduct, the study highlights the challenges auditors face due to technical limitations, workload pressures, and compromised autonomy. Empirical data, gathered through a survey of 200 Chartered Accountants and Audit Committees, is analyzed using statistical methods to establish correlations between auditor independence, technological advancements, and fraud detection. The findings demonstrate a positive but modest link between auditor independence and financial fraud recognition, while also addressing the impact of automation and AI on auditing practices. The study emphasizes the significance of regulatory frameworks to strengthen aud itor independence and offers recommendations for enhancing audit quality and transparency in financial reporting.