Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9554691 | Journal of Contemporary Accounting & Economics | 2005 | 28 Pages |
Abstract
This study investigates auditor independence and audit quality in auditor-client negotiation over financial reporting issues using Taiwan data. We find a significant negative relation between non-audit services and the extent of client agreement with the auditor over financial reporting issues, consistent with non-audit services reducing independence. However, the interaction of non-audit fees with auditor tenure suggests that non-audit fees do not affect the auditor's ability to resist client management pressure when auditor tenure is longer. Clients are not more likely to agree with a Big 5 auditor, but are more likely to agree with auditors perceived to be industry specialists.
Keywords
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business, Management and Accounting (General)
Authors
Ken Y. Chen, Randal J. Elder, Jo-Lan Liu,