What Is the Relationship between Audit Quality and Non-Audit Services? An Overview of the Existing Literature

8 Pages Posted: 6 Jun 2018 Last revised: 16 Jun 2018

Date Written: June 7, 2018

Abstract

This paper takes stock of the literature that appeared on the relation between audit and non-audit services. Press, regulators and academics alike have raised concerns about how audit quality is impacted if audits are performed by firms that offer advisory and audit services. I examine the literature that has investigated impediments that regulators have imposed on audit firms to also provide advisory (non-audit services). The studies provide little support for this concern. In fact, the findings suggest that positive spill over effects occur when firms combine audit with advisory services. However unspecified levels of advisory services (not advice on tax or financial information systems) may have a negative impact on audit quality.

Keywords: Non-audit service, audit, spill over

JEL Classification: M42

Suggested Citation

Bouwens, Jan, What Is the Relationship between Audit Quality and Non-Audit Services? An Overview of the Existing Literature (June 7, 2018). Available at SSRN: https://ssrn.com/abstract=3184895 or http://dx.doi.org/10.2139/ssrn.3184895

Jan Bouwens (Contact Author)

Amsterdam Business School ( email )

Roetersstraat 11
Amsterdam, 1018 WB
Netherlands
+31 20 5258740 (Phone)

Register to save articles to
your library

Register

Paper statistics

Downloads
159
Abstract Views
497
rank
189,162
PlumX Metrics