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NON-AUDIT SERVICES AND AUDITOR INDEPENDENCE: NEW ZEALAND EVIDENCE |
| Journal: | Journal of Business Finance & Accounting (view standing data) | | Volume: | 33 | | Issue: | 5-6 | | Month: | June | | Year: | 2006 | | Start Page: | 715 | | End Page: | 734 |
| Author(s): | David Hay, Robert Knechel and Vivian Li |
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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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