The non-audit fee and the auditee’s failure risk
Journal Title: Zeszyty Teoretyczne Rachunkowości - Year 2018, Vol 2018, Issue 99
Abstract
This paper examines whether the auditee’s financial situation affects the auditor’s non-audit fee and independ- ence. Three sets of tests were used to address the issue. The first examines whether there are cross-border and intertemporal differences in relationships between non-audit fees and audit fees. The second tests whether there is a relationship between non-audit fees and report modification. The third addresses the relationships between audit fees and the auditee’s financial situation. The results suggest a lack of coexistence of all three motives for the purchase of non-audit fee services, and substantial similarities of auditor and auditee behaviors across Po- land and New Zealand. We documented the lack of a significant link between auditee failure risk and the quality of the audit report. Our findings indicate an operational rather than a strategic nature of non-audit services to incumbent clients.<br/><br/>
Authors and Affiliations
Piotr Staszkiewicz, Rumiana Górska
Keywords
Related Articles
- EP ID EP366748
- DOI 10.5604/01.3001.0012.2935
- Views 119
- Downloads 0
Practical use of the integrated reporting framework – an analysis of the content of integrated reports of selected companies
Practical use of the integrated reporting framework – an analysis of the content of integrated reports of selected companies
The financial statements in „National Lampoon”
Economic developments in the United States in 2000–2001, particularly Enron and WorldCom scandal have made a phenomenon which was called creative accounting. With creative accounting we have to do, when permitted by law...
The use of innovation action research approach in the preparation of a regulation on costing standard
The article analyzes the applicability of the innovation action research method for activities related to the preparation of a concept of a costing standard for healthcare providers which is subject to legal regula-tion....
Accounting policy in the context of taxes
The article explores a very important issue connected with accounting policies in an economic unit. Each company pays taxes on sales as well as on income. The accounting system in an enterprise should be so designed as t...
Main approaches to scientific research in accounting
This paper offers a synthetic description of three major approaches to accounting research (research perspectives), identified by W.F. Chua (1986): the mainstream perspective, interpretative perspective and critical pers...