Dimensions of pressures faced by auditors and its impact on auditors’ independence : A comparative study of the USA and Australia

Research has focused on factors causing pressure and impairing auditor independence. These include competition, opinion shopping, client and auditor size, and client financial health. No study has examined the characteristics of the pressures. Responses to case studies sent to auditors in the USA and Australia were analysed via factor analysis. The objective was, first, to increase understanding of the underlying dimensions of pressures faced by these auditors; and second, to examine any similarities between these two countries, similar in culture, but significantly different in such respects as the legal environment. The results indicate two dimensions: pressure to retain the client, and to conform. The first is a more pervasive but subtle pressure while, in the second, the auditor is asked to follow a certain course of action. Pressure to retain the client appears to be greater for auditors in both countries, relative to the pressure to conform. So the underlying dimensions of the pressures in these countries are similar.