%0 Journal Article
%T The Relationships between Director-Auditor Link and Audit Opinion
%A Mazrah Malek
%A Ayoib Che Ahmad
%J Asian Journal of Finance & Accounting
%D 2011
%I 
%R 10.5296/ajfa.v3i1.661
%X The auditor-auditee relationship has become a concern due to its possible effect on auditor¡¯s independence. One common form of relationship is the director-auditor link generated by interlocking directorates. Therefore the objective of this study is to examine the effect of director-auditor link on audit opinion. Analysis is conducted by using Probit regression on a sample of 759 companies listed on the Bursa Malaysia for the year 2007. The results show that the issuance of audit opinion is influenced by the director-auditor link, whereby it is found that auditors have higher possibility to issue unqualified audit opinion to interlink companies (interlocking companies sharing a common auditor). The findings are consistent with the attachment theory which suggests that attachments create mutual dependence and mutual trusts between the parties involved.
%U http://www.macrothink.org/journal/index.php/ajfa/article/view/661