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Non-audit services and auditor independence: Norwegian evidence

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Non-audit services and auditor independence: Norwegian evidence. / Zhang, Yu (Elli); Hay, David; Holm, Claus.
In: Cogent Business & Management, Vol. 3, No. 1, 1215223, 2016, p. 1-19.

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaper › Journal article › Research › peer-review

Harvard

Zhang, Y, Hay, D & Holm, C 2016, 'Non-audit services and auditor independence: Norwegian evidence', Cogent Business & Management, vol. 3, no. 1, 1215223, pp. 1-19. https://doi.org/10.1080/23311975.2016.1215223

APA

Zhang, Y., Hay, D., & Holm, C. (2016). Non-audit services and auditor independence: Norwegian evidence. Cogent Business & Management, 3(1), 1-19. Article 1215223. https://doi.org/10.1080/23311975.2016.1215223

CBE

Zhang Y, Hay D, Holm C. 2016. Non-audit services and auditor independence: Norwegian evidence. Cogent Business & Management. 3(1):1-19. https://doi.org/10.1080/23311975.2016.1215223

MLA

Zhang, Yu (Elli), David Hay, and Claus Holm. "Non-audit services and auditor independence: Norwegian evidence". Cogent Business & Management. 2016, 3(1). 1-19. https://doi.org/10.1080/23311975.2016.1215223

Vancouver

Zhang Y, Hay D, Holm C. Non-audit services and auditor independence: Norwegian evidence. Cogent Business & Management. 2016;3(1):1-19. 1215223. doi: 10.1080/23311975.2016.1215223

Author

Zhang, Yu (Elli) ; Hay, David ; Holm, Claus. / Non-audit services and auditor independence: Norwegian evidence. In: Cogent Business & Management. 2016 ; Vol. 3, No. 1. pp. 1-19.

Bibtex

@article{2b76af1456ae4856874b4c3e8962d9a6,
title = "Non-audit services and auditor independence: Norwegian evidence",
abstract = "We examine the effect on auditor independence of auditors providing non-audit services in the Norwegian audit market. We report the results of three tests of independence of mind and one test of independence in appearance. These tests find that there is a positive relationship between audit fees and non-audit fees, which does not suggest loss of independence. Further analysis using two-stage least squares shows that audit and non-audit fees are jointly determined, and the results are still not consistent with loss of independence. There is no relationship between the provision of non-audit services and the frequency with which auditors issue modified audit opinions. There is no association between non-audit services and audit tenure. Finally, we examine the relationship between unexpected or excess non-audit fees and cost of capital. There is no relationship. Our findings fail to find any evidence for loss of independence of mind or loss of independence of appearance as a result of providing non-audit services.",
keywords = "Norway, audit opinion, audit tenure, auditing, auditor independence, non-audit fees",
author = "Zhang, {Yu (Elli)} and David Hay and Claus Holm",
year = "2016",
doi = "10.1080/23311975.2016.1215223",
language = "English",
volume = "3",
pages = "1--19",
journal = "Cogent Business & Management",
issn = "2331-1975",
publisher = "Taylor & Francis",
number = "1",

}

RIS

TY - JOUR

T1 - Non-audit services and auditor independence: Norwegian evidence

AU - Zhang, Yu (Elli)

AU - Hay, David

AU - Holm, Claus

PY - 2016

Y1 - 2016

N2 - We examine the effect on auditor independence of auditors providing non-audit services in the Norwegian audit market. We report the results of three tests of independence of mind and one test of independence in appearance. These tests find that there is a positive relationship between audit fees and non-audit fees, which does not suggest loss of independence. Further analysis using two-stage least squares shows that audit and non-audit fees are jointly determined, and the results are still not consistent with loss of independence. There is no relationship between the provision of non-audit services and the frequency with which auditors issue modified audit opinions. There is no association between non-audit services and audit tenure. Finally, we examine the relationship between unexpected or excess non-audit fees and cost of capital. There is no relationship. Our findings fail to find any evidence for loss of independence of mind or loss of independence of appearance as a result of providing non-audit services.

AB - We examine the effect on auditor independence of auditors providing non-audit services in the Norwegian audit market. We report the results of three tests of independence of mind and one test of independence in appearance. These tests find that there is a positive relationship between audit fees and non-audit fees, which does not suggest loss of independence. Further analysis using two-stage least squares shows that audit and non-audit fees are jointly determined, and the results are still not consistent with loss of independence. There is no relationship between the provision of non-audit services and the frequency with which auditors issue modified audit opinions. There is no association between non-audit services and audit tenure. Finally, we examine the relationship between unexpected or excess non-audit fees and cost of capital. There is no relationship. Our findings fail to find any evidence for loss of independence of mind or loss of independence of appearance as a result of providing non-audit services.

KW - Norway

KW - audit opinion

KW - audit tenure

KW - auditing

KW - auditor independence

KW - non-audit fees

U2 - 10.1080/23311975.2016.1215223

DO - 10.1080/23311975.2016.1215223

M3 - Journal article

VL - 3

SP - 1

EP - 19

JO - Cogent Business & Management

JF - Cogent Business & Management

SN - 2331-1975

IS - 1

M1 - 1215223

ER -