Study of Nonaudit Services, Low Balling, Audit Tenure, and Auditor Type

New Zealand and Australian Evidence

Arvind Patel, Pranil Prasad, Naibuka Saune*

*Corresponding author for this work

Research output: Contribution to journalArticle

1 Citation (Scopus)


This article investigates the reasons for supply of nonaudit services by the incumbent auditor. The audit and nonaudit fee data for listed companies in New Zealand and Australia is used in the study. The results suggest that the simultaneous provision of audit and nonaudit services are for efficiency reasons rather than to maximize revenue for the auditors. Hence the regulations in place to restrict the amount of nonaudit services that an auditor can provide its client may result in inefficiencies or incurrence of unnecessary costs for the client and auditor.

Original languageEnglish
Pages (from-to)121-134
Number of pages14
JournalJournal of Asia-Pacific Business
Issue number2
Publication statusPublished - Apr 2010
Externally publishedYes


  • Knowledge spillovers
  • Low balling
  • Nonaudit services

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