Non‐Audit Services and Knowledge Spillovers: Evidence from New Zealand

Journal of Business Finance and Accounting - Tập 39 Số 1-2 - Trang 60-81 - 2012
W. Robert Knechel1, Divesh S. Sharma, Vineeta D. Sharma2
1Accounting & Information Management
2The first author is from the University of Florida. The second and third authors are from Kennesaw State University. They thank Andrew Stark (editor) and the anonymous referee for providing constructive comments and suggestions. (Paper received November 2010, revised version accepted October 2011)

Tóm tắt

Abstract:  New Zealand provides a natural laboratory to test whether knowledge spillovers arise from auditor‐provided non‐audit services. Unlike prior research, we do not assume constant audit quality but first test whether audit quality varies with auditor‐provided non‐audit services and audit efficiency. Results show that higher non‐audit fees paid to the auditor in conjunction with shorter audit lag does not reduce the quality of the audit. Results reveal a negative association between non‐audit fees and audit lag, thus suggesting the presence of knowledge spillovers. However, the knowledge spillover effect is limited to the city office providing both the audit and non‐audit services.

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