The Determinants of External Auditors’ Independence for Politically Connected Firms in Malaysia

The auditing profession is a major concern for stakeholders and has been in quagmire the past years. To overcome concern, client firms must take initiative to assure that management does not put pressure on external auditors. Therefore, need part positively influencing auditors‟ independence reduce complexity of audit procedures, consequently, improve independence. Thus, determinants factors are needed maintain auditors at any time perform their work. Hence, main objective this study examine among politically connected Malaysia. classified into two which are, first, auditor attributes namely, tenure non-audit fee, second, committee characteristics consist committee‟s diligence. Four hypotheses were developed tested using total 46 sample from 2014 2018 with 230 firm-year observations. This used secondary data information was obtained annual reports DataStream. results reveal fee diligence influenced independence, whereas did not. Altogether, provided useful implications professional bodies Bursa Malaysia help strengthen principles firms.
 Keywords: Auditor Attributes, Audit Committee, Independence, Political Connection