A research-based commentary on the EC Green Paper "Audit Policy: Lessons form the Crisis": Governance and independence.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskning

Abstrakt

In the wake of ehe financial crisis, the EU Commision has published a Green Paper on the future role of the audit function in Europe. The Green Paper lists a number of proposals for tighter rules for audits and auditors in order to contribute to stabilizing the financial system. The present article presents research contributions to the question whether the auditor is to continue to provide both audit and non-audit services (NAS) to an audit client. Research results show that this double function for the same audit client is a problem for stakeholders' confidence in auditor independence. The Green Paper proposes that a solution could be to prohibit NAS to audit clients. Research results indecate alernative possibilitiers: e.g. banning the most harmful non-audeit sevices and / or limiting the relative share of fees from NAS.
OriginalsprogEngelsk
TidsskriftSchriften zur Quantitativen Betriebswirtschaftslehre
Vol/bind2011
Udgave nummer1
Sider (fra-til)1-15
Antal sider15
ISSN1432-6671
StatusUdgivet - jan. 2011

Emneord

  • Independence, Nonaudit services, auditing

Citationsformater