IDEAS home Printed from https://ideas.repec.org/a/bla/jbfnac/v28y2001i5-6p563-594a.html
   My bibliography  Save this article

Professionalism vs Commercialism: The Association Between Non‐Audit Services (NAS) and Audit Independence

Author

Listed:
  • Divesh S. Sharma
  • Jagdish Sidhu

Abstract

The implications of the provision of NAS to audit clients on audit independence have attracted considerable regulatory and research attention. This study contributes to this topical issue by investigating the association between NAS and audit independence using actual fee data and a more appropriate context that enables a proper ex post assessment of the correctness of the auditor's opinion decision. The results are consistent with the notion that auditors exhibit low propensity to issue a going‐concern qualification to clients generating higher proportions of NAS fees to total fees and raise independence implications regarding the joint provision of audit and NAS.

Suggested Citation

  • Divesh S. Sharma & Jagdish Sidhu, 2001. "Professionalism vs Commercialism: The Association Between Non‐Audit Services (NAS) and Audit Independence," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 28(5‐6), pages 563-594, June.
  • Handle: RePEc:bla:jbfnac:v:28:y:2001:i:5-6:p:563-594:a
    DOI: 10.1111/1468-5957.00385
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1468-5957.00386
    Download Restriction: no

    File URL: https://libkey.io/10.1111/1468-5957.00385?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nikola Petrovic & Stuart Manson & Jerry Coakley, 2009. "Does Volatility Improve UK Earnings Forecasts?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 36(9‐10), pages 1148-1179, November.
    2. C.S. Agnes Cheng & Simon S.M. Yang, 2003. "The Incremental Information Content of Earnings and Cash Flows from Operations Affected by Their Extremity," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(1‐2), pages 73-116, January.
    3. Beattie, Vivien, 2005. "Moving the financial accounting research front forward: the UK contribution," The British Accounting Review, Elsevier, vol. 37(1), pages 85-114.
    4. Richard Kent & Jacqueline Birt, 2021. "IAS 7 and value relevance: the direct method versus the indirect method," Review of Accounting Studies, Springer, vol. 26(4), pages 1532-1586, December.
    5. Colin Clubb, 2003. "Discussion of the Incremental Information Content of Earnings and Cash Flows from Operations Affected by Their Extremity," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(1‐2), pages 117-124, January.
    6. Bilal Ahmed & Minhas Akbar & Tanazza Sabahat & Saqib Ali & Ammar Hussain & Ahsan Akbar & Xie Hongming, 2020. "Does Firm Life Cycle Impact Corporate Investment Efficiency?," Sustainability, MDPI, vol. 13(1), pages 1-13, December.
    7. Malik Abu Afifa & Fares Alsufy & Ahmad Abdallah, 2020. "Direct and Mediated Associations among Audit Quality, Earnings Quality, and Share Price: The Case of Jordan," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(3), pages 500-516.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jbfnac:v:28:y:2001:i:5-6:p:563-594:a. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0306-686X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.