The Impact of Selected Corporate Governance Programmes to Auditor Independence: Some Evidence from Malaysia

Abstract

Corporate governance is essential for establishing an attractive investment climate characterised by competitive companies and an efficient capital market. This paper examines the impact of four corporate governance programmes to perceived auditor independence from the perspective of Malaysian auditors, loan officers and senior managers of public listed companies. Questionnaire and interview surveys were employed to seek the respondent's perceptions on these issues. It is found that auditor independence would be safeguarded on the following issues: the compliance with the Financial Reporting Standards (FRS) of the Malaysian Accounting Standard Board (MASB) was legally mandated, the establishment of the Malaysian Institute of Corporate Governance (MICG), the establishment of the Minority Shareholders Watchdog Group (MSWG) and the implementation of mandatory director accreditation training programme (MDATP).