Auditor independence, joint determination of audit and non-audit fees and the incidence of qualified audit reports
![Thumbnail](/xmlui/bitstream/handle/10234/22596/35201.pdf.jpg?sequence=7&isAllowed=y)
View/ Open
Impact
![Google Scholar](/xmlui/themes/Mirage2/images/uji/logo_google.png)
![Microsoft Academico](/xmlui/themes/Mirage2/images/uji/logo_microsoft.png)
Metadata
Show full item recordcomunitat-uji-handle:10234/9
comunitat-uji-handle2:10234/8648
comunitat-uji-handle3:10234/8649
comunitat-uji-handle4:
INVESTIGACIONMetadata
Title
Auditor independence, joint determination of audit and non-audit fees and the incidence of qualified audit reportsDate
2009Publisher
Universidad de los Andes. Facultad de AdministraciónISSN
1012-8255Bibliographic citation
DE FUENTES BARBERÁ, Cristina; PUCHETA-MARTÍNEZ, María Consuelo. Auditor independence, joint determination of audit and non-audit fees and the incidence of qualified audit reports. Academia. Revista Latinoamericana de Administración, 2009, no 43, p. 63-92.Type
info:eu-repo/semantics/articleVersion
info:eu-repo/semantics/publishedVersionSubject
![](/xmlui/themes/Mirage2/images/uji/materia_peq.png)
![](/xmlui/themes/Mirage2/images/uji/materia_peq.png)
![](/xmlui/themes/Mirage2/images/uji/materia_peq.png)
![](/xmlui/themes/Mirage2/images/uji/materia_peq.png)
![](/xmlui/themes/Mirage2/images/uji/materia_peq.png)
![](/xmlui/themes/Mirage2/images/uji/materia_peq.png)
![](/xmlui/themes/Mirage2/images/uji/materia_peq.png)
![](/xmlui/themes/Mirage2/images/uji/materia_peq.png)
![](/xmlui/themes/Mirage2/images/uji/materia_peq.png)
![](/xmlui/themes/Mirage2/images/uji/materia_peq.png)
Abstract
The aim of this study is to examine whether the provision of non-audit services by the incumbent auditor compromises auditor independence in a low litigation risk environment such as in the case of Spain, where the ... [+]
The aim of this study is to examine whether the provision of non-audit services by the incumbent auditor compromises auditor independence in a low litigation risk environment such as in the case of Spain, where the audit litigation risk is not likely to be the main external deterrent for audit malpractices. To achieve this goal we analyse whether audit and non-audit fees are simultaneously determined, and we also test whether the joint provision of audit and non-audit services reduces the incidence of qualified audit reports. Confirming prior research, when running single equation models the results obtained are supportive of the presence of knowledge spillovers between the two services. Nevertheless, we also empirically establish that audit and non-audit fees are jointly determined and when applying a simultaneous-equation model, then, the flows of knowledge spillovers cannot
be proved. We also find that auditors are not less likely to issue qualified audit reports when they jointly supply audit and non-audit services [-]
El objetivo de este trabajo es analizar si la independencia del auditor de una empresa se ve comprometida cuando presta de forma conjunta servicios de
auditoría y servicios adicionales a la misma, en un entorno con ... [+]
El objetivo de este trabajo es analizar si la independencia del auditor de una empresa se ve comprometida cuando presta de forma conjunta servicios de
auditoría y servicios adicionales a la misma, en un entorno con bajo riesgo de litigio como es el español, donde no es probable que el auditor de cuentas se enfrente a algún litigio por haber llevado a cabo una mala praxis. Para alcanzar este objetivo, nosotros estudiamos si los honorarios de la auditoría y de los servicios adicionales a la misma se determinan de forma conjunta, así como también si la provisión conjunta de ambos servicios reduce la incidencia de informes de auditoría con salvedades. Al igual que la evidencia previa, nosotros concluimos que cuando aplicamos un sistema de ecuaciones simples se pone de manifiesto transferencia de conocimientos entre los dos servicios. No obstante, nosotros también contrastamos empíricamente que los servicios de auditoría y de los servicios adicionales a la misma se determinan conjuntamente y cuando aplicamos un modelo de ecuaciones simultáneas, los resultados no revelan transferencia de conocimientos. Por otra parte, también evidenciamos que los auditores que prestan de forma conjunta los dos servicios no son más proclives a reducir la
emisión de informes de auditoría con salvedades [-]
Is part of
Academia : revista latinoamericana de administración, 2009, no. 43Rights
© Consejo Latinoamericano de Escuelas de Administración
http://rightsstatements.org/vocab/InC/1.0/
info:eu-repo/semantics/openAccess
http://rightsstatements.org/vocab/InC/1.0/
info:eu-repo/semantics/openAccess
This item appears in the folowing collection(s)
- COFIN_Articles [218]
The following license files are associated with this item:
Related items
Showing items related by title, author, creator and subject.
-
Opinion-shopping: firm versus partner-level evidence
Garcia Osma, Beatriz; GILL DE ALBORNOZ NOGUER, BELEN; De Las Heras Cristóbal, Elena; Rusanescu, Simona Routledge (2021)Employing Lennox’s (2000) methodology on a uniquely long time series of Spanish companies’ data, we find evidence of successful audit opinion-shopping through the firm switching decision. However, in contrast to Chen et ... -
Non-audit services and auditor independence in Spain
Van Strahlen Obando, Diana Vanessa Universitat Jaume I (2018-07-09)The sector auditing in Spain is going through a period of changes and modifications, where companies hire the services of auditing and audit firms are forced to adapt in a short time, since the adoption of the new Act ... -
Literature review on audit opinion-shopping
Torres Cebrián, María José Universitat Jaume I (2018-07-09)Reviewing the literature can always help us find the limitation of previous studies. This work offers a review of the literature related to the audit opinion-shopping of foreign and Spanish research. The review is organized ...