The provision of non-audit services, audit fees and auditor independence
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 regressio...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Universiti Sains Malaysia
2006
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| Subjects: | |
| Online Access: | http://repo.uum.edu.my/74/1/Ayoib_Che_Ahmad%2C_and_Rohami_Shafie%2C_and_Nor_Zalina_Mohamad_Y.pdf http://repo.uum.edu.my/74/ http://www.usm.my/journal/aamjaf/main.htm |
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| Summary: | 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. |
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