Recently, there are many issues and cases that involve the company auditor. This includes the misstatement of the information given by the auditor, misuse of the auditor power and they also get involved in the corruption and bribery. From those issues and cases that involve the auditor, the auditor independence element is being question nowadays. This is because the main element that needed by all auditor is independence. So, this paper focuses on identifying the factors that give influence to the auditor independence which focus in audit firm in area of Selangor. In this research study, the researcher had identified seven factors which can affect the auditor independence. This include the size of audit firm, the tenure of an audit firm, level of competition among audit firm, the existence of audit committees, audit fee, non audit service and auditor’s reputation. The researcher conducts this study in order to see the relationship between those seven variables influence auditor independence. A set of questionnaire was distributed to 175 individual respondents who work at the audit firm in area of Selangor. This study use the Likert-scale question to answer both independent and dependent variables. The data collected were tested and analyse by using the Statistical Package for the Social Sciences (SPSS). The result of this research study found that there are positive significant relationships between the factors and the auditor independence. Thus, this research adds the further evidence to the value of studying the factors that affect the auditor independence.
