Audit quality across non-audit service fee benchmarks: Evidence from material weakness opinions

Joseph Legoria, Gina Rosa and Jared S. Soileau

Research in Accounting Regulation, 2017, vol. 29, issue 2, 97-108

Abstract: Regulators have voiced concerns regarding the impact of auditor provided non-audit services (NAS) on auditor independence, and by extension, audit quality. This study considers whether the provision of various levels of (NAS) influences the auditor's propensity to issue material weakness opinions (MWO). The results indicate that audit clients that purchase zero NAS, and clients that purchase NAS less than Sarbanes-Oxley's benchmark of NAS fees less than 5% of total fees, are more likely to receive a MWO than clients with a NAS at higher levels.

Keywords: Non-audit fees; Material weakness; Audit quality (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reacre:v:29:y:2017:i:2:p:97-108

DOI: 10.1016/j.racreg.2017.09.001

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