Auditor-provided nonaudit services

Post-EU-regulation evidence from Denmark

Dennis van Liempd*, Reiner Quick, Bent Warming-Rasmussen

*Kontaktforfatter for dette arbejde

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

Resumé

This survey study focuses on the relationship between the simultaneous provision of audit and nonaudit services and auditor independence-in-appearance as perceived by Danish stakeholders. Thereby, the perceived usefulness of the new EU public-interest entity regulation and audit directive is evaluated. Our findings indicate that the joint provision of nonaudit and audit services is negatively associated with perceived auditor independence. However, this differs according to the type of stakeholder group. Many individual services, even those not on the EU blacklist, are regarded as problematic. Nevertheless, the relation to independence-in-appearance differs by type of service. The EU cap on nonaudit services fees seems to be too high. The separation between audit firms' staff that provides auditing services and staff that provides nonaudit services, and an approval of nonaudit services by the audit committee, are not regarded as helpful in enhancing auditor independence. Finally, respondents see a need to expand the strict EU regulations for audits of public-interest entities to audits of large non-public-interest entities.

OriginalsprogEngelsk
TidsskriftInternational Journal of Auditing
Vol/bind23
Sider (fra-til)1-19
ISSN1090-6738
DOI
StatusUdgivet - 1 mar. 2019

Fingeraftryk

Denmark
Audit
Nonaudit services
Auditors
Auditor independence
Stakeholders
Public interest
Staff
Auditing
Fees
Audit committee
Audit firms
Perceived usefulness

Citer dette

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abstract = "This survey study focuses on the relationship between the simultaneous provision of audit and nonaudit services and auditor independence-in-appearance as perceived by Danish stakeholders. Thereby, the perceived usefulness of the new EU public-interest entity regulation and audit directive is evaluated. Our findings indicate that the joint provision of nonaudit and audit services is negatively associated with perceived auditor independence. However, this differs according to the type of stakeholder group. Many individual services, even those not on the EU blacklist, are regarded as problematic. Nevertheless, the relation to independence-in-appearance differs by type of service. The EU cap on nonaudit services fees seems to be too high. The separation between audit firms' staff that provides auditing services and staff that provides nonaudit services, and an approval of nonaudit services by the audit committee, are not regarded as helpful in enhancing auditor independence. Finally, respondents see a need to expand the strict EU regulations for audits of public-interest entities to audits of large non-public-interest entities.",
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Auditor-provided nonaudit services : Post-EU-regulation evidence from Denmark. / van Liempd, Dennis; Quick, Reiner; Warming-Rasmussen, Bent.

I: International Journal of Auditing, Bind 23, 01.03.2019, s. 1-19.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

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