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The effects of recurring and non‐recurring non‐audit services on auditor independence
| Content Provider | Semantic Scholar |
|---|---|
| Author | Alexander, Deborah Hay, David |
| Copyright Year | 2013 |
| Abstract | Purpose - This study seeks to examine whether there are differences between companies that purchase either recurring or non-recurring audit services and those that do not, and whether auditors discount their audit fees for either type of non-audit service. Design/methodology/approach - The study examines associations between audit and non-audit fees in New Zealand, for the period 1995 to 2001. The advantage of this setting is that data on non-audit services was disclosed in this period and that the period pre-dates more recent controversies over whether non-audit services are permissible. Findings - Companies that purchase any type of non-audit services from their auditors are larger and more complex than companies that purchase auditing only. Companies that obtain tax services from their auditors usually do so on a recurring basis. In contrast, consulting services do not tend to occur every year. Auditors do not discount their fees for either recurring or non-recurring non-audit services. Research limitations/implications - While useful data is available about the type of non-audit services provided, there are limitations to the extent to which this information provides a precise measure of whether the services were recurring or not. Originality/value - The research contributes to understanding the issues regarding auditors providing non-audit services by providing evidence that neither recurring nor non-recurring services are associated with a reduction in audit fees. This finding is relevant when considering whether regulation of non-audit services should permit certain types of services, or should prohibit all non-audit services. |
| Starting Page | 407 |
| Ending Page | 425 |
| Page Count | 19 |
| File Format | PDF HTM / HTML |
| DOI | 10.1108/02686901311327191 |
| Volume Number | 28 |
| Alternate Webpage(s) | https://researchspace.auckland.ac.nz/bitstream/handle/2292/21946/The+Effects+of+Recurring+and+Non-recurring+Non-Audit+Services+Dec+2012+v2.pdf?sequence=5 |
| Alternate Webpage(s) | https://doi.org/10.1108/02686901311327191 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
