Non audit services provided by incumbent auditors and earnings managementevidence of auditor independence from an EU country
ISSN: 0210-2412
Año de publicación: 2011
Número: 152
Páginas: 587-612
Tipo: Artículo
Otras publicaciones en: Revista española de financiación y contabilidad
Información de financiación
* Acknowledgments: The authors are grateful for the financial support to University of Valencia of Spain (Research Project UV-AE-24161) and to the Ministry of Science and Technology of Spain (Research Project ECO2009-14457-C04-04). And they gratefully acknowledge comments and suggestions from anonymous reviewers. ** Corresponding Author: Pedro Carmona Ibáñez. Departamento de Contabilidad, Facultat d'Economia, Universitat de València. Av. Tarongers s/n, 46022, València. España. E-mail: pedro.carmona@uv.esFinanciadores
-
Ministry of Education, Science and Technology
South Korea
- ECO2009-14457-C04-04
-
- UV-AE-24161
Referencias bibliográficas
- Abbott, L.; Parker, S., and Peters, G. 2006. Earnings Management, Litigation Risk, and Asymmetric Audit Fee Responses. Auditing: A Journal of Practice & Theory 25 (1): 85-98.
- Albrecht, S. W., and Sack, R. J. 2000. Accounting Education: Charting the Course Through a Perilous Future. Sarasota, FL: The American Accounting Association.
- Abtle, R.; Gordon E.; Narayanamoorthy G., and Zhou, L. 2006. The joint determination of audit fees, non-audit fees, and abnormal accruals. Review of Quantitative Finance and Accounting 27 (3): 235-266.
- Ashbaugh, H.; LaFond, R., and Mayhew, B. W. 2003. Do nonaudit services compromise auditor independence? Further evidence. Accounting Review 78 (3): 611-639.
- Ashbaugh, H.; LaFond, R., and Mayhew, B. W. 2004. Ethical issues related to the provision of audit and non-audit services: evidence from academic research. Journal of Business Ethics. June: 143-148.
- Bartov, E.; Gul F.A., and Tsui, J. S. L. 2000. Discretionary-accruals models and audit qualifications. Journal of accounting and Economics 30: 421-452.
- Beck, P. J.; Frecka, T. J., and Solomon, I. 1988. A model of the market for MAS and audit services: Knowledge spillovers and auditor-auditee bonding. Journal of Accounting Literature 7: 50-64.
- Becker, C.; DeFond M.; Jiambalvo J., and Subramanyam K. R. 1998. The effect of audit quality on earnings management. Contemporary Accounting Research 15 (1): 1-24.
- Choi, W. W., and Lee, H. Y. 2009. The provision of tax services by incumbent auditors and earnings management: evidence from Korea. Journal of International Financial Management and Accounting 20 (1): 79-103.
- Chung, H., and Kallapur, S. 2003. Client importance, nonaudit services, and abnormal accruals. The Accounting Review 78 (4): 931-955.
- Craswell, A. T. 1999. Does the provision of non-audit services impair auditor independence? International Journal of Auditing 3 (1): 29-40.
- De Fuentes, C., and Pucheta-Martinez, M. C. 2009. Auditor independence, joint determination of audit and non-audit fees and the incidence of qualified audit reports. Academia, Revista Latinoamericana de Administración 43: 63-92.
- Dechow, P.; Sloan R., and Sweeney A. 1995. Detecting Earnings Management. Accounting Review 70 (2): 193-225.
- DeFond, M. L., and Subramanyam K. R. 1998. Auditor changes and discretionary accruals. Journal of Accounting and Economics 25: 35-67.
- DeFond, M. L.; Raghunandan, K., and Subramanyam, K. R. 2002. Do non-audit service fees impair auditor independence? Evidence from going concern audit opinions. Journal of Accounting Research 40 (40): 1247-1274.
- Francis, J. R., and Ke, B. 2006. Disclosure of fees paid to auditors and the market valuation of earnings surprises, Review of Accounting Studies 11 (4): 495-523.
- Frankel, R.M.; Johnson, M. F., and Nelson, K. K. 2002. The relation between auditors' fees for nonaudit services and earnings management, Accounting Review 77: 71-105.
- Firth, M. 2002. Auditor provided-consultancy services and their associations with audit fees and audit opinion. Journal of Business Finance and Accounting 29 (5/6): 661-693.
- Francis, J. R. 2004. What do we know about audit quality? The British Accounting Review 26 (4): 345-368.
- Geiger M. A., and Raghunandan, K. 2002. Auditor tenure and audit quality. Auditing: A Journal of Practice & Theory 21: 187-196.
- Geiger, M. A., and Rama D. V. 2003. Audit fees, non-audit fees, and auditor reporting on stressed companies. Auditing: A Journal of Practice & Theory 22 (2): 53-69.
- Gore, P.; Pope, P., and Sing, A. 2001. Non-audit services, auditor independence and earnings management, working paper, Lancaster: Lancaster University Management School.
- Gujarati, D. N. 1995. Basic Econometrics. New York: McGraw-Hill.
- Gul, F. A., and Windsor, C. 1994. The Effects of Demand Characteristics on Auditor Independence Studies. Asia-Pacific Journal of Accounting, December: 133-146.
- Habib, A., and Islam, A. 2007. Determinants and consequences of non-audit service fees. Managerial Auditing Journal 22 (5): 446-469.
- Hartley, R. V., and Ross, T. L. 1972. MAS and Audit Independence: An Image Problem. The Journal of Accountancy 134 (5): 42-51.
- Heninger, W. G. 2001. The association between auditor litigation and abnormal accruals, Accounting Review 76: 111-126.
- Hosmer, D. W., and Lemeshow, S. 2000. Applied logistic regression. 2nd ed. Hoboken, NJ., USA: John Wiley & Sons.
- Jones, J. 1991. Earnings Management During Import Relief Investigations. Journal of Accounting Research 29 (2): 193-228.
- Judge, G. G.; Hill, R. C.; Griffiths, W. E.; Lutkepohl, H., and Lee, T. C. 1988. Introduction to the Theory and Practice of Econometrics. 2nd ed., New York, NY: Wiley.
- Knapp, M. C. 1985. Audit Conflict: An Empirical Study of the Perceived Ability of Auditors to Resist Management Pressure. The Accounting Review 60 (2): 202-211.
- Kothari, S. P.; Leone, A. J., and Wasley, C. E. 2005. Performance matched discretionary accrual measures. Journal of Accounting and Economics 39 (1): 163-197.
- Komish, L. J., and Levine, C. B. 2004. Discipline with common agency: The case of audit and nonaudit services. The Accounting Review 79 (1): 173-200.
- Larker, D. F., and Richardson, S. A. 2004. Fees paid to audit firms, accrual choices and corporate governance. Journal of Accounting Research 42: 625-58.
- Lennox, C. S. 1999. Non-audit fees, disclosure and audit quality. European Accounting Review 8 (2): 239-252.
- Li, V.; Hay, D., and Knechel, R. 2006. Non-audit services and auditor independence: New Zeland evidence. Journal of Business Finance & Accounting 33 (5/6): 715-734.
- Matsumoto, D. 2002. Management's Incentives to Avoid Negative Earnings Surprises. The Accounting Review 77 (3): 483-514.
- McNichols, M. 2000. Research Design Issues in Earnings Management Studies. Journal of Accounting and Public Policy 19 (4/5): 313-345.
- Monterrey, J., and Sanchez Segura, A. 2007. Rotación y dependencia económica de los auditores: sus efectos sobre la calidad del resultado en las compañía cotizadas españolas. Investigaciones Económicas, vol. 29 (1): 119-159.
- Mora, A.; Garcia-Lara, J. M.; Garcia-Osma, B., and Gisbert, A. 2004. La comparabilidad de la información contable en Europa. Efectos de la manipulación contable sobre el nivel de conservadurismo. WP-EC 2004-14.
- Nelson, M. W. 2004. A review of experimental and archival conflicts-of-interest research in auditing. Working paper, Ithaca, NY: Cornell University.
- Pany, K., and Reckers, P. M. J. 1983. Auditor Independence and Non-Audit Services: Directors Views and Their Policy Implications. Journal of Accounting and Public Policy 2 (1): 43-62.
- Pany, K., and Reckers, P. M. J. 1984. Non-Audit Services and Auditor Independence: A Continuing Problem. Auditing: A Journal of Practice and Theory. Spring: 89-97.
- Pany, K., and Reckers, P. M. J. 1988. Auditor performance of MAS: A study of its effects on decisions and perceptions. Accounting Horizons 2 (June): 31-38.
- Peasnell, K. V.; Pope, P. F., and Young, S. 2005. Board Monitoring and Earnings Management: Do Outside Directors Influence Abnormal Accruals? Journal of Business Finance & Accounting 32 (7/8): 1311-1346.
- Reynolds, J. K., and Francis J. R. 2001. Does size matters? The influence of large clients on officelevel auditor reporting decisions. Journal of Accounting and Economics 30 (3): 375-400.
- Ruddock, C., and Taylor, S. 2005. Non-audit services, audit fees and earnings management. Working paper, Sydney: University of New South Wales, Kensington and Capital Markets CRC Ltd.
- Ruiz Barbadillo, E.; Gómez Aguilar, N., and Carrera Pena, N. 2006. Evidencia empírica sobre el efecto de la duración del contrato en la calidad de la auditoría: análisis de las medidas de retención y rotación obligatoria de auditores. Investigaciones Económicas 30: 283-316.
- Ryan, S. G.; Herz, R. H.; T. Lannaconi, T. E.; Maines, L. A.; Palepu, K.; Schrand, C. M.; Skinner, D. J., and Vincent, L. 2001. SEC auditor requirements. Accounting Horizons 15: 373-386.
- Schulte, A. A. Jr. 1965. Compatibility of management consulting and auditing. The Accounting Review. July: 587-593.
- Sharma, D. S. 2001. The association between non-audit services and the propensity of going concern qualifications: Implications for audit independence. Asia-Pacific Journal of Accounting & Economics 8: 143-155.
- Sharma, D. S., and Sidhu, J. 2001. Professionalism vs. Commercialism: the association between non-audit services (NAS) and audit independence. Journal of Business Finance and Accounting 28 (5/6): 563-594.
- Shockley, R. A. 1981. Perceptions of Auditors Independence: An Empirical Analysis. The Accounting Review 56 (4): 785-800.
- Simunic, D. A. 1984. Auditing, consulting, and auditor independence. Journal of Accounting Research 22: 679-702.
- Titard, P. L. 1971. Independence and MAS -Opinions of Financial Statement Users. The Journal of Accountancy. July, 1: 47-52.
- Turner, L. D.; Aldhizer, G. R., and Shank, M. D. 1999. Client Perception of MAS Quality as Measured by a Marketing-Based Service Quality Model. Accounting Horizons 13 (1): 17-36.
- Warfield, T. D.; Wild, J. J., and Wild, K. L. 1995. Managerial ownership, accounting choices, and informativeness of earnings. Journal of Accounting and Economics 20: 61-91.