Patel, Arvind and Prasad, Pranil (2013) Auditor independence, audit fees Lowballing, and non - audit services: evidence from Fiji. Accounting and Taxation, 5 (2). pp. 103-120. ISSN 1944-529X
Full text not available from this repository.Abstract
This study empirically examines the supply side of the market for non-audit services. In particular, a model for the supply side of the market for non-audit services is developed. This model is then tested using audit and non-audit fee data from Fijian listed companies from the year 1980 to 2010. We find that audit fee low-balling leads to increased supply of non-audit services. This result is statistically significant. We also find that Big 4 auditors supply less non-audit services compared to non-Big 4
auditors. Finally, we find that the longer the auditor tenure the lower the supply of non-audit services.
However, both these results are statistically insignificant. This leads to a conclusion that non-audit services are being supplied for opportunistic reasons as opposed to efficiency reasons. Our results are robust to a number of sensitivity checks.
| Item Type: | Journal Article |
|---|---|
| Subjects: | H Social Sciences > HJ Public Finance |
| Divisions: | Faculty of Business and Economics (FBE) > School of Accounting and Finance |
| Depositing User: | Pranil Prasad |
| Date Deposited: | 23 Apr 2014 05:05 |
| Last Modified: | 05 Jul 2016 23:21 |
| URI: | https://repository.usp.ac.fj/id/eprint/7257 |
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