The Effect of Non-Audit Services on Auditor Independence: Evidence from Vietnam |
DOAN, Nga Thanh
(Auditing Department, School of Accounting and Auditing, National Economics University)
PHAM, Cuong Duc (School of Accounting and Auditing, National Economics University) NGUYEN, Thuong Thi Uyen (School of Accounting and Auditing, National Economics University) VU, Mai Phuong (School of Accounting and Auditing, National Economics University) PHAM, Lam Ha (School of Accounting and Auditing, National Economics University) |
1 | Frankel, R. M., Johnson, M. F., & Nelson, K. K. (2002). The relation between auditors' fees for nonaudit services and earnings management. The accounting review, 77(s-1), 71-105. https://doi.org/10.2308/accr.2002.77.s-1.71 DOI |
2 | FRC. (2010). Revisions to FRC guidance on audit committees: Non-audit services. Retrieved October 26, 2020 from https://www.accaglobal.com/vn/en/technical-activities/technicalresources-search/2010/october/frc-revisions.html |
3 | Ghosh, A. A., Kallapur, S., & Moon, D. (2009). Audit and non-audit fees and capital market perceptions of auditor independence. Journal of Accounting and Public Policy, 28(5), 369-385. https://doi.org/10.1016/j.jaccpubpol.2009.07.001 DOI |
4 | Geiger, M. A., Lowe, D. J., & Pany, K. J. (2002). Appearances are important: Outsourced internal audit services and the perception of auditor independence. The CPA Journal, 72(4), 20-25. |
5 | Habib, A., & Islam, A. (2007). Determinants and consequences of non‐audit service fees. Managerial Auditing Journal, 22(5), 446-469. https://doi.org/10.1108/02686900710750748 DOI |
6 | Hay, D., Knechel, R., & Li, V. (2006). Non‐audit services and auditor independence: New Zealand evidence. Journal of Business Finance & Accounting, 33(5‐6), 715-734. https://doi.org/10.2139/ssrn.452260 DOI |
7 | Jenkins, J. G., & Krawczyk, K. (2001). The influence of nonaudit services on perceptions of auditor independence. Journal of Applied Business Research, 17(3). https://doi.org/10.19030/jabr.v17i3.2235 DOI |
8 | Kinney Jr, W. R. (1999). Auditor independence: A burdensome constraint or core value?. Accounting Horizons, 13(1), 69. https://doi.org/10.2308/acch.1999.13.1.69 DOI |
9 | Abbott, L. J., Parker, S., Peters, G. F., & Rama, D. V. (2003). Audit, nonaudit, and information technology fees: Some empirical evidence. Accounting and the Public Interest, 3(1), 1-20. https://doi.org/10.2308/api.2003.3.1.1 DOI |
10 | AICPA (1997a). Codification of auditing standards - SAS No. I, AICPA Professional Standards, New York. |
11 | AICPA (1997b). Serving the Public Interest: A New Conceptual Framework for Auditor Independence. New York. |
12 | Bartlett, R. W. (1993). A scale of perceived independence: New evidence on an old concept. Accounting, Auditing & Accountability Journal, 6(2). https://doi.org/10.1108/09513579310036378 DOI |
13 | Beattie, V., & Fearnley, S. (2002). Auditor Independence and NonAudit Services: A Literature Review. Institute of Chartered Accountants in England and Wales, London. |
14 | Brandon, D. M., Crabtree, A. D., & Maher, J. J. (2004). Nonaudit fees, auditor independence, and bond ratings. Auditing: A Journal of Practice & Theory, 23(2), 89-103. https://doi.org/10.2308/aud.2004.23.2.89 DOI |
15 | Beattie, V., Brandt, R., & Fearnley, S. (1999). Perceptions of auditor independence: UK evidence. Journal of International Accounting, Auditing and Taxation, 8(1), 67-107. https://doi.org/10.1016/S1061-9518(99)00005-1 DOI |
16 | Beck, P. J., Frecka, T. J., & Solomon, I. (1988). An empirical analysis of the relationship between MAS involvement and auditor tenure: Implications for auditor independence. Journal of Accounting literature, 7(1), 65-84. |
17 | Blay, A. D., & Geiger, M. A. (2013). Auditor fees and auditor independence: Evidence from going concern reporting decisions. Contemporary Accounting Research, 30(2), 579-606. https://doi.org/10.2139/ssrn.1943124 DOI |
18 | Chu, J., & Ki, E. S. (2019). Do auditor's efforts of interim review curb the analyst forecast's walkdown? Journal of Asian Finance, Economics and Business, 6(2), 45-54. https://doi.org/10.13106/jafeb.2019.vol6.no2.45 DOI |
19 | Dopuch, N., King, R. R., & Schwartz, R. (2003). Independence in appearance and in fact: An experimental investigation. Contemporary Accounting Research, 20(1), 79-114. https://doi.org/10.1506/9B5D-HLLP-BBQE-8N3F DOI |
20 | Eilifsen, A., Messier, W. F., Glover, S. M., & Prawitt, D. F. (2013). Auditing and assurance services. New York, NY: McGraw-Hill. |
21 | Firth, M. (1997). The provision of nonaudit services by accounting firms to their audit clients. Contemporary Accounting Research, 14(2), 1-21. https://doi.org/10.1111/j.1911-3846.1997.tb00524.x DOI |
22 | Law, P. (2010). The influence of the types of NAS provisions and gifts hospitality on auditor independence. International Journal of Accounting & Information Management, 105-117. https://doi.org/10.13106/10.1108/18347641011048101 DOI |
23 | Kinney Jr, W. R., Palmrose, Z. V., & Scholz, S. (2004). Auditor independence, non‐audit services, and restatements: Was the US government right? Journal of Accounting Research, 42(3), 561-588. https://doi.org/10.1111/j.1475-679X.2004.t01-1-00141.x DOI |
24 | Knapp, M. C. (1985). Audit conflict: An empirical study of the perceived ability of auditors to resist management pressure. Accounting Review, 202-211. |
25 | Kwak, J. W., & Park, M. J. (2020). Effect of auditor's simultaneous audit and tax services and tax-service fee on firm value: Korea's evidence. Journal of Asian Finance, Economics and Business, 7(7), 219-228. https://doi.org/10.13106/jafeb.2020.vol7.no7.219 DOI |
26 | Le, D. D. M. (2017). Non-audit services and independence of Vietnamese auditors. Financial Review, 1(6), 80-83. |
27 | Nguyen, H. A., Ha, H. H., & Nguyen, L. S. (2020). Determinants of Information Technology Audit Quality: Evidence from Vietnam. Journal of Asian Finance, Economics and Business, 7(4), 41-50. https://doi.org/10.13106/jafeb.2020.vol7.no4.41 DOI |
28 | Palmrose, Z. V. (1999). Empirical research in auditor litigation: Considerations and data. American Accounting Association. |
29 | Pany, K., & Reckers, P. M. (1984). Non-audit services and auditor independence-A continuing problem. Auditing: A Journal of Practice & Theory, 3(2), 89-97. |
30 | Quick, R., & Warming-Rasmussen, B. (2005). The impact of MAS on perceived auditor independence-some evidence from Denmark. Accounting Forum, 29(2), 137-168. https://doi.org/10.1016/j.accfor.2004.09.001 DOI |
31 | SEC. (2000). Final Rule: Revision of the Commission's Auditor Independence Requirements. November, 21, 2000. Retrieved October 26, 2020 from https://www.sec.gov/rules/final/33-7919.htm |
32 | Ratzinger-Sakel, N. V. (2013). Auditor fees and auditor independence―Evidence from going concern reporting decisions in Germany. Auditing: A Journal of Practice & Theory, 32(4), 129-168. https://doi.org/10.2308/ajpt-50532 DOI |
33 | Savin, N. E., & White, K. J. (1977). The Durbin-Watson test for serial correlation with extreme sample sizes or many regressors. Econometrica: Journal of the Econometric Society, 1989-1996. DOI |
34 | Simunic, D. A. (1984). Auditing, consulting, and auditor independence. Journal of Accounting Research, 679-702. https://doi.org/10.2307/2490671 DOI |
35 | Thornton, J. M., & Shaub, M. K. (2014). Tax services, consequence severity, and jurors' assessment of auditor liability. Managerial Auditing Journal, 29(1), 50-75. DOI |
36 | Wallman, S. M. H. (1996). The future of accounting, part III: Reliability and auditor independence, Accounting Horizons, 10, 76-97. |
37 | Wang, S. W. S., & Hay, D. (2013). Auditor independence in New Zealand: Further evidence on the role of non-audit services. Accounting and Management Information Systems, 12(2), 235-262. https://doi.org/10.2139/SSRN.2218072 DOI |
38 | Weil, J., & Tannenbaum, J. (2001). Big companies pay audit firms more for other services. Wall Street Journal, 10. Retrieved October 26, 2020 from https://www.wsj.com/articles/SB986848130788136961 |
39 | Whisenant, S., Sankaraguruswamy, S., & Raghunandan, K. (2003). Evidence on the joint determination of audit and non‐audit fees. Journal of Accounting Research, 41(4), 721-744. https://doi.org/10.1111/1475-679X.00121 DOI |