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The provision of non-audit services, audit fees and auditor independence


Che Ahmad, Ayoib and Shafie, Rohami and Mohamad Yusof, Nor Zalina (2005) The provision of non-audit services, audit fees and auditor independence. In: 6th Asian Academy of Management Conference (AAMC) 2005, 09-11 December 2005, Casuarina Hotel, Ipoh, Perak. (Unpublished)

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Abstract

The objectives of this study are to examine the effect of non-audit services on audit fees, to investigate the relationship between non-audit fees and the issuance of qualified audit opinion, and to analyse the proportion of non-audit fees to total fees paid by a client to its auditor.The regression analysis reveals a significant positive relationship between audit fees and non-audit fees, which is contrary to the theory available in the literature.Further tests are done and alternative explanations are provided.The results obtained from the t-test suggest a significant relationship between non-audit fees and qualified audit opinions.The outcomes indicate that on average audit opinions are dependent on the amount of non-audit fees.Finally, the descriptive analysis presents a worrying development about the ratio of non-audit fees to total fees.The study suggests ways to improve the independence issues in Malaysia.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Non-Audit services, Audit Fees, Auditor Independence, Audit Opinion
Subjects: H Social Sciences > HG Finance
Divisions: College of Business
Depositing User: Prof. Dr. Ayoib Che Ahmad
Date Deposited: 26 Aug 2014 02:04
Last Modified: 26 Aug 2014 02:04
URI: http://repo.uum.edu.my/id/eprint/11822

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