Protecting Auditor Independence by Means of Company Law: The Case of the Companies Code of Ghana

Abstract

A content analysis of the Companies Code (Act 179 of 1963) of Ghana has been used to determine the extent to which company law in Ghana protects the auditor’s independence. It was determined that the present law, the Companies Code, does not make adequate provision to protect Auditor independence in Ghana. The practical implication of this finding is that the law relating to company audits in Ghana requires an update to strengthen the auditor’s independence in Ghana. The value of this paper lies in its contribution to the debate on auditor independence and how it can be improved under a reviewed Companies code of Ghana.

Key words: Audit, Audit independence, Agency problem, Peer Review, Auditor Rotation