Non-audit service fees and audit quality: The impact of auditor specialization

Journal of Accounting Research

Volumn 46, Issue 1, 2008, Pages 199-246

  Lim, Chee Yeow ^a   Tan, Hun Tong ^a  

^a NANYANG TECHNOLOGICAL UNIVERSITY   (Singapore)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 38349026280     PISSN: 00218456     EISSN: 1475679X     Source Type: Journal    
DOI: 10.1111/j.1475-679X.2007.00266.x     Document Type: Article

References (45)

1. Altman, E. Financial Ratios, Discriminant Analysis and the Prediction of Corporate Bankruptcy Journal of Finance 23 (1968 589 609.
2. Ashbaugh, H. R. Lafond and B. W. Mayhew Do Non-Audit Services Compromise Auditor Independence? Further Evidence Accounting Review 78 (2003 611 639.
3. Balsam, B. J. Krishnan and J. Yang Auditor Industry Specialization and Earnings Quality Auditing: A Journal of Practice & Theory 22 (2003 71 97.
4. Bartov, E. D. Givoly and C. Hayn The Rewards to Meeting or Beating Earnings Expectation Journal of Accounting & Economics 33 (2002 173 204.
5. Beck, P. J. T. J. Frecka and I. Solomon A Model of the Market for MAS and Audit Services: Knowledge Spillovers and Auditor-Auditee Bonding Journal of Accounting Literature 7 (1988 50 64.
6. Bell, T. B. M. E. Peecher and I. Solomon. The 21st Century Public Accounting Audit. Montvale, New Jersey : KPMG International, 2005.
7. Benston, G. Accountants' Integrity and Financial Reporting Financial Executive (August, 1975 10 14.
8. Carcello, J. V., and A. L. Nagy Client Size, Auditor Specialization and Fraudulent Financial Reporting Managerial Auditing Journal 19 (2004 651 668.
9. Chung, H., and S. Kallapur Client Importance, Non-Audit Services and Abnormal Accruals The Accounting Review 78 (2003 931 955.
10. Craswell, A. J. Francis and S. Taylor Auditor Brand Name Reputations and Industry Specializations Journal of Accounting & Economics 20 (1995 297 322.
11. Davis, L. R. D. N. Ricchiute and G. Trompeter Audit Effort, Audit Fees, and the Provision of Nonaudit Services to Audit Clients Accounting Review 68 (1993 135 150.
12. DeAngelo, L. Auditor Size and Audit Quality Journal of Accounting & Economics 3 (1981 183 199.
13. Dechow, P. R. Sloan and A. Sweeney Detecting Earnings Management The Accounting Review 70 (1995 193 225.
14. Defond, M. L. K. Raghunandan and K. R. Subramanyam Do Non-Audit Service Fees Impair Auditor Independence? Evidence from Going-Concern Audit Opinion Journal of Accounting Research 40 (2002 1247 1274.
15. Dunn, K. A., and B. W. Mayhew Auditor Firm Industry Specialization and Client Disclosure Quality Review of Accounting Studies 9 (2002 35 58.
16. Francis, J., and B. Ke Disclosure of Fees Paid to Auditors and the Market Valuation of Earnings Surprises Review of Accounting Studies 11 (2006 495 523.
17. Frankel, R. M. M. F. Johnson and K. K. Nelson The Relation Between Auditors' Fees for Non-Audit Services and Earnings Management The Accounting Review 77 (2002 71 106.
18. Geiger, M., and D. Rama Audit Fees, Nonaudit Fees, and Auditor Reporting on Stressed Companies Auditing: A Journal of Practice & Theory 22 (2003 53 69.
19. Jones, J. Earnings Management During Import Relief Investigations Journal of Accounting Research 29 (1991 193 228.
20. Kasznik, R., and M. McNichols Does Meeting Earnings Expectations Matter? Evidence from Analyst Forecast Revisions and Share Prices Journal of Accounting Research 40 (2002 727 759.
21. Kinney, W. R., and R. Libby Discussion of the Relation Between Auditors' Fees for Non-Audit Services and Earnings Management The Accounting Review 77 (2002 107 114.
22. Kinney, W. R. Z. V. Palmrose and S. W. Scholz Auditor Independence, Non-Audit Services, and Restatements: Was the U.S. Government Right? Journal of Accounting Research 42 (2004 561 588.
23. Krishnan, G. Does Big 6 Auditor Industry Expertise Constrain Earnings Management? Accounting Horizons 17 (2003 1 16.
24. Krishnan, J. H. Sami and Y. Zhang Does the Provision of Nonaudit Services Affect Investor Perceptions of Auditor Independence? Auditing: A Journal of Practice & Theory 24 (2005 111 135.
25. Levitt, A. The "Numbers Game Remarks of SEC Chairman A. Levitt at the New York University Center for Law and Business, New York, NY, September 28, 1998.
26. Liao, T. Interpreting Probability Models: Logit, Probit, and other Generalized Linear Models Sage University Paper Series on Quantitative Applications in the Social Sciences, Series No. 07-101. Thousand Oaks, CA : Sage, 1994.
27. Lopez, T., and L. Rees The Effect of Beating and Missing Analysts' Forecasts on the Information Content of Unexpected Earnings Journal of Accounting, Auditing, and Finance 17 (2002 155 184.
28. Lys, T., and R. Watts Lawsuits Against Auditors Journal of Accounting Research 32 (1994 65 93.
29. Mayhew, B., and M. Wilkins Audit Firm Industry Specialization as a Differentiation Strategy: Evidence From Fees Charged to Firms Going Public Auditing: A Journal of Practice & Theory 22 (2003 33 52.
30. McKeown, J. J. Mutchler and W. Hopwood Towards an Explanation of Auditor Failure to Modify the Audit Opinions of Bankrupt Companies Auditing: A Journal of Practice & Theory 10 (1991 1 24.
31. Neal, T., and R. Riley Auditor Industry Specialist Research Design Auditing: A Journal of Practice & Theory 23 (2004 169 177.
32. O'Keefe, T. B. R.D. Kin and K. M. Gaver Audit Fees, Industry Specialization, and Compliance with GAAS Reporting Standards Auditing: A Journal of Practice & Theory 13 (1994 41 55.
33. Owhoso, V. E. W. F. Messier and J. G. Lynch Error Detection by Industry-Specialized Teams During Sequential Audit Review Journal of Accounting Research 40 (2002 883 900.
34. Palmrose, Z. V. An Analysis of Auditor Litigation and Audit Service Quality The Accounting Review 63 (1988 55 73.
35. Payne, J., and W. Thomson The Implications of Using Stock-Split Adjusted I/B/E/S Data in Empirical Research The Accounting Review 78 (2003 1049 1067.
36. Plumlee, D. R. The Standard of Objectivity for Internal Auditors: Memory and Bias Effects Journal of Accounting Research 23 (1985 683 699.
37. Reynolds, J. K., and J. R. Francis Does Size Matter? The Influence of Large Clients on Office-Level Auditor Reporting Decisions Journal of Accounting & Economics 30 (2000 375 400.
38. Securities and Exchange Commission (SEC). Final Rule: Revision of the Commission's Auditor Independence Requirements. 17 CFR Parts 210 and 240. Washington, DC : SEC, 2000.
39. Shu, S. Z. Auditor Resignations: Clientele Effects and Legal Liability Journal of Accounting & Economics 29 (2000 173 205.
40. Simunic, D. Auditing, Consulting, and Auditor Independence Journal of Accounting Research 22 (1984 679 702.
41. Solomon, I. Discussion of the Jointness of Audit Fees and Demand for MAS: A Self-Selection Analysis Contemporary Accounting Research 7 (1990 323 328.
42. Solomon, I. M. Shields and R. Whittington What Do Industry-Specialist Auditors Know? Journal of Accounting Research 37 (1999 191 208.
43. Watts, R., and J. Zimmerman Agency Problems, Auditing, and the Theory of the Firm: Some Evidence Journal of Law and Economics 26 (1983 613 633.
44. Whisenant, S. S. Sankaraguruswamy and K. Raghunandan Evidence on the Joint Determination of Audit and Non-Audit Fees Journal of Accounting Research (2003 721 744.
45. Zmijewski, M. Methodological Issues Related to the Estimation of Financial Distress Prediction Models Journal of Accounting Research 22 (1984 59 82.