Association between audit opinion and provision of non‐audit services

Nasrollah Ahadiat

International Journal of Accounting & Information Management, 2011, vol. 19, issue 2, 182-193

Abstract: Purpose - While a few US studies on the impact of the provision of non‐audit services on auditor judgment have found potential harm to independence, it is the purpose of this study to investigate whether the British and Australian auditors' involvement with both audit and non‐audit services for the same clients may also produce similar results. Design/methodology/approach - The parametrict‐tests and the nonparametric Mann‐Whitney tests are used in this study on the empirical data from the British and Australian companies to examine the potential for loss of independence when high levels of non‐audit services are provided to audit clients. Findings - The results corroborated the US Securities and Exchange Commission's contention that the provision of non‐audit services may indeed impair independence. Research limitations/implications - No attempts were made to isolate the effects of other factors that could result in the issuance of qualified opinions. In addition, the sample used in this investigation is comprised of firms that had voluntarily disclosed non‐audit fees in the early years of the study. This could potentially introduce a self‐selection bias. Nevertheless, this study is one of a kind in the international arena. Originality/value - This paper extends the line of research examining the impact of non‐audit services on the auditor's independence.

Keywords: Accounting; Auditors; Securities markets; United Kingdom; Australia (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:ijaimp:v:19:y:2011:i:2:p:182-193

DOI: 10.1108/18347641111136463

Access Statistics for this article

International Journal of Accounting & Information Management is currently edited by Dr Xin (Robert) Luo and Professor Han Donker

More articles in International Journal of Accounting & Information Management from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().