An Interpretative Study of Auditor Independence and Ethics under Managerial Pressure

Abstract

Auditor independence remains a central concern in accounting ethics, representing the foundation of public trust and professional integrity in financial reporting. Within this domain, growing attention has been given to how auditors experience ethical dilemmas and negotiate independence under managerial and organizational pressure. However, prior research has predominantly examined independence through regulatory or behavioral models, leaving the subjective meaning and moral experience of auditors largely unexplored. This study addresses that gap by asking: How do auditors experience, interpret, and sustain their independence in the face of managerial pressure? Using an Interpretative Phenomenological Analysis (IPA), this research explores the lived experiences of twelve professional auditors working in both public and private audit settings. Participants were selected through purposive sampling based on their professional experience and direct exposure to managerial pressure. Data were collected through in-depth semi-structured interviews, and the analysis followed standard IPA procedures, including iterative coding, emergent theme development, and cross-case interpretation. Data were analyzed to reveal the moral, emotional, and contextual dimensions of independence. The findings indicate that independence is not a fixed regulatory state but a dynamic ethical experience, shaped by continuous moral reflection, emotional negotiation, and contextual adaptation. Auditors described independence as a process of balancing personal integrity with institutional expectations, often maintained through reflective resistance and ethical dialogue within their professional communities. These findings enrich the understanding of auditor independence as a lived phenomenon, extending beyond procedural compliance to encompass moral agency and identity formation. The study offers implications for ethical education, professional training, and organizational policy aimed at strengthening reflective ethical practice among auditors.