Abstract
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 language | English |
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Pages (from-to) | 121-134 |
Number of pages | 14 |
Journal | Journal of Asia-Pacific Business |
Volume | 11 |
Issue number | 2 |
DOIs | |
Publication status | Published - Apr 2010 |
Externally published | Yes |
Keywords
- Knowledge spillovers
- Low balling
- Nonaudit services