On May 8, 2024, at 15:00 pm, the 30th Forum on Digital Technology and Economic Finance Frontiers was successfully held. The theme of this lecture was "An interactionist perspective on the meaning of auditor independence in China", and the guest speaker was Professor Steven Dellaportas from the Xi'an Jiaotong-Liverpool University. The lecture was chaired by Jin Shi, the Professor of the Finance School and chief expert of the Innovation and Talent Base for Digital Technology and Finance, and more than 70 people from the School of Finance participated in this lecture.

First, as China's economic system undergoes profound changes, with the acceleration of privatization, the expansion of the stock market, and the strengthening of public sector accountability, the principle of auditor independence is becoming increasingly important in China. However, there is still a lack of discussion on how this principle is specifically understood and applied in China. In the lecture, Professor Steven Dellaportas delved into a study on auditor independence in China, revealing its complex connotations as a socially constructed concept and bringing new perspectives and insights to the Chinese auditing industry.

During the lecture, Professor Dellaportas first outlined the research background. He pointed out that with the rapid economic and social development in China, auditors, as crucial guardians of the capital market, must maintain their independence. However, in stark contrast to this importance, there are relatively few studies on the understanding and application of auditor independence in the Chinese cultural and social context.

Subsequently, Professor Dellaportas delved into the core findings of the study. Through in-depth interviews with 43 auditors from the Chinese National Audit Office (CNAO), the research found that the meaning of auditor independence is a multifaceted construct composed of three interrelated dimensions. The first is "structural independence," which mainly stems from the institutional structure and authority of the CNAO, serving as the cornerstone for maintaining auditor independence. The second is "relational independence," which is derived from auditors' observations and interactions with various parties during the audit process, reflecting their interactions and balances in complex social networks. The third is "autonomous independence," which emphasizes auditors' maintenance of independence through self-reflection and self-evaluation, embodying the moral perseverance and professional ethics of auditors when faced with conflicts of interest.

These three dimensions collectively constitute the complex connotations of auditor independence, highlighting how the ongoing and contextualized interactions between auditors and key roles influence their conceptualization of auditor independence. Professor Dellaportas emphasized that this finding not only reveals the socially constructed nature of auditor independence in China, but also provides a new perspective for understanding how auditors maintain their independence in complex social environments.

According to the research team, the original meaning of auditor independence may be primarily based on the legitimate authority of the CNAO, but over time and with further auditing practices, this meaning may be challenged and modified to reflect the attribution of independence to auditors by significant others. This finding not only provides theoretical support for the practice of the Chinese auditing industry, but also valuable reference for policymakers and regulatory agencies.

At the end of the lecture, Professor Dellaportas emphasized the importance and significance of research on auditor independence in China. He pointed out that with the continuous development of China's economy and society, the importance of auditor independence will become even more prominent. This research not only provides an opportunity for auditors to reflect on themselves, but also serves as a reference for policymakers and regulatory agencies to improve and perfect the auditing system, further promoting the healthy development of the Chinese auditing industry. The lecture ended successfully.

Speaker Introduction

Steven Dellaportas is a Professor of Accounting at Xi’an Jiaotong-Liverpool University, Suzhou, China. Steven has published over 60 articles in international per-review journals. Professional ethics in accounting is his primary area of research with an interest in codes of ethics, fraud, professionalism and ethics education. Steven’s research has led to a number of invited presentations in Australia, Asia, UK and the US. Steven is a member on several editorial boards and is presently the Co-Editor for the Accounting Section of the Journal of Business Ethics. Steven has also been gest editor on special issues in accounting for journals such as Managerial Auditing Journal, Meditari Accountancy Research, and Accounting Education. Steven is the lead author of two textbooks, the most recent titled: Principles of Ethics and Corporate Governance in Financial Services, published in English and Japanese. Steven is also a content developer on ethics subject matter for accounting bodies in their professional development programs.

Frontier Forum for Digital Technology and Finance introduction

Recent years have witnessed a dramatic acceleration in a digital revolution in economic sectors and a rapid adoption of the new generation of information technologies, such as artificial intelligence, blockchain, cloud computing, big data, etc. These technologies effectively set off the digital economy. It has become a key driving force in creating global economic growth, improving the modernization level of governance capabilities, and promoting high-quality economic development in China. In particular, digital finance is the most important part of the digital economy. To explore the development direction of the cross-integration of digital technology and finance, the Innovation and Talent Base for Digital Technology and Finance is hosting the “Frontier Forum for Digital Technology and Finance”, in collaboration with the School of Finance, Wenlan School of Business, Economics School, School of Information and Safety Engineering, School of Statistics and Mathematics, School of Public Finance and Taxation of Zhongnan University of Economics and Law (ZUEL). This lecture series will invite the well-known scholars at home and abroad in digital technology, digital economy, digital finance, and other related fields as guest speakers, providing an open and cutting-edge academic exchange platform for interdisciplinary research on digital technology and finance.