Threats to Auditor Independence: The Relationship of Auditor-Client and Auditor-Provided Non-audit Services

• Main Authors: Ke, Bo-Ruei, 柯柏睿
• Other Authors: Huang, Shaio-Yan
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/44929240734562205643

碩士 === 國立中正大學 === 會計與資訊科技研究所 === 100 === This study examines the association of a comprehensive set of audit-client relationship bonds, including audit firm tenure, audit engagement partner tenure, relationships tenure, and alumni affiliation. There are many inconsistencies in the literature on the empirical results due to fees information is difficult to obtain in the past.Therefore, this study was undertaken in Taiwanese companies in 2010, which provided a context in which all these relationships could be examined after the fees information were opened, examined if auditor independence will be affected with the level of non-audit services provided to an audit client. Results show that long audit firm tenure, audit engagement partner tenure, and relationships tenure are significant associated with clients purchasing auditor-provided NAS, furthermore, audit firm tenure with stronger associations for clients with low agency costs. This study also found that one of audit and non audit fees for the same rank level from the system is unreasonable, it is recommended to modify the non-audit fee level or exclude the rank applicable, and used the absolute amount revealed. This study fills a gap in the existing auditing literature, directly hypothesizing and testing NAS models. The study examines the costs and benefits of purchasing auditor-provided NAS prior to increased regulatory attention, as such, it contributes to our knowledge of the nature of NAS and its determinants.