The Provision of Non-Audit Services, Audit Fees and Auditor Independence

Ayoib Che Ahmad and Nava Subramaniam ()
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Ayoib Che Ahmad: Faculty of Business, Auckland University of Technology, New Zealand
Nava Subramaniam: Department of Accounting, Finance and Economics, Griffith Business School Griffith University, Australia

Asian Academy of Management Journal of Accounting and Finance (AAMJAF), 2006, vol. 2, issue 1, 21-40

Abstract: Although internal auditing (IA) services have been traditionally performed in-house, organizations are increasingly outsourcing such services. Using a Transaction Cost Economics (TCE) perspective, this study examined the influence of several organizational-level variables on the decision to outsource or in-house their internal audit function. The study also identified the type of IA services that were likely to be out-sourced rather than in-housed, the extent to which incumbent external financial statement auditors participated in outsourced arrangements and the level of interaction between the internal audit provider and audit committees. The results have implications for auditor independence, corporate governance and organizational performance.

Keywords: non-audit services; audit fees; auditor independence; audit opinion (search for similar items in EconPapers)
Date: 2006
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