Non-Audit Services and Auditor Independence: Some Evidence from Malaysia

31 Pages Posted: 19 Dec 2005

See all articles by Zulkarnain Muhamad Sori

Zulkarnain Muhamad Sori

INCEIF, The Global University of Islamic Finance

Yusuf Karbhari

affiliation not provided to SSRN

Date Written: December 2005

Abstract

Regulators and stakeholders in worldwide capital markets have placed a great concern on the potential threat of joint provision of audit and non-audit services to audit client on perceived auditor independence. This study reports the research findings of the effects of the joint provision of audit and non-audit services (NAS) on perceived auditor independence from the perspective of Malaysian auditors, loan officers and senior managers of public listed companies. The main findings of the study were that auditor independence would significantly threaten when audit and NAS were jointly provided by audit engagement team, however, this perceptions were changed when exist proper segregation of duties or 'Chinese Wall' in audit firms either by way of staff from separate department or entities.

Keywords: Non-audit services, auditor independence, segregation of duties, Malaysia and regulations

JEL Classification: M40

Suggested Citation

Muhamad Sori, Zulkarnain and Karbhari, Yusuf, Non-Audit Services and Auditor Independence: Some Evidence from Malaysia (December 2005). Available at SSRN: https://ssrn.com/abstract=871137 or http://dx.doi.org/10.2139/ssrn.871137

Zulkarnain Muhamad Sori (Contact Author)

INCEIF, The Global University of Islamic Finance ( email )

Lorong Universiti A
Kuala Lumpur, Kuala Lumpur 59100
Malaysia
+60376514173 (Phone)
8 (Fax)

HOME PAGE: http://www.inceif.org/

Yusuf Karbhari

affiliation not provided to SSRN

No Address Available

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