Non-audit Services and Auditor Independence: New Zealand Evidence |
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| Authors: | David Hay Robert Knechel Vivian Li |
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| Institution: | The first and third authors are from the University of Auckland –Department of Accounting and Finance, and the second author is from the University of Florida –Fisher School of Accounting, and the University of Auckland –Department of Accounting and Finance. |
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| Abstract: | Abstract: This paper examines evidence in New Zealand about whether auditors providing more non-audit services are less independent. Three sets of tests are used to address the issue. The first examines whether there is a relation between non-audit fees and audit fees, the second examines whether there is a relation between non-audit fees and audit report qualification or modification, and the third examines whether there is a relation between non-audit fees and stability of audit tenure. The results suggest a potential for the impairment of auditor independence in appearance when auditors provide non-audit services but no evidence of any impact on independence of mind. |
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| Keywords: | auditing non-audit fees auditor independence audit opinion audit tenure |
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