Relationships Between Corporate Control Environment and Stakeholders That Mediate Pressure on Independent Auditors in France

Giemegerman Carhuapomachacon, Joshua Onome Imoniana (), Cristiane Benetti, Vilma Geni Slomski and Valmor Slomski
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Giemegerman Carhuapomachacon: IESEG School of Management, Université Catholique, 59000 Lille, France
Joshua Onome Imoniana: School of Economics, Management and Accounting, University of Sao Paulo, Sao Paulo 05508-010, Brazil
Cristiane Benetti: Finance Department, ICN Business School, CEREFIGE, Université de Lorraine, 54000 Nancy, France
Vilma Geni Slomski: UniFECAP—Centro Universitário Alvares Penteado, Sao Paulo 01502-001, Brazil
Valmor Slomski: School of Economics, Management and Accounting, University of Sao Paulo, Sao Paulo 05508-010, Brazil

JRFM, 2025, vol. 18, issue 6, 1-18

Abstract: The purpose of this research is to examine how relationships between corporate control environments and stakeholders mediate the different dimensions of pressure on auditor independence. In France, two (joint) auditors are required by law for listed companies. In this context, we analyze the experiences of higher-echelon professionals of audit firms, controllers, and managers who could elucidate the essence of pressure on auditor independence in their lived environment. An interpretative approach and empirical analysis were adopted for this study to expand on the literature and proffer an answer to the following research question: How does the relationship between a control environment and a stakeholder mediate the pressures on auditor independence? Interviews involved seven participants, mainly higher-echelon professionals of Big Four firms, as well as two members of auditee organizations, and a member of an audit committee. In addition, the narratives from the documents gathered from the EU audit legislation implementation database constitute our data corpus. Thematic coding was used to organize the results. The findings reveal that control environment best practices and down-to-earth corporate governance policies, participated in by both auditors and audited organizations, cushion the pressures on auditors. This, in turn, presents a positive and significant impact on auditor independence. Overall, the dimensions that mediate the pressures on auditors are as follows: the consciousness of pressure in itself; the reputation and experience of the audit firm; and the interactions between the auditors and corporate governance. Other factors include the cordiality of the relationship between the auditor and corporate management and the resulting healthy end of the negotiation between auditors and auditees. This study contributes to the theory and practical discussion of the relationships between the corporate control environment, corporate governance, auditing, and pressure on auditor independence.

Keywords: auditor independence; pressure; audit committee; control environment; corporate governance (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2025
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