The Effect Of Non-Audit Services And Related Threats On Investors' Perceptions Of Auditor Independence: An Experiment

Publikation: Bidrag til tidsskriftKonferenceartikelForskningpeer review

Resumé

The provision of non-audit services by the statutory auditor may have a negative impact on independence in mind as well as on independence in appearance. Prior research revealed that different advisory services have a different effect on perceived auditor independence. This could be caused by the fact that a differnt number and intensity of endependence threats is attached to indiviual services. Therefore this experimental study investigates the effect of such threats on independence perceptions of German individual investors. The results show that the selfreview and the familiarity threat may impair auditor independence disregarding their size. Furthermore, it was found that a higher self-review threat increases the negative impact on independence perceptions. an advocacy threat, however, seens to be irrelevant. Manipulation checks disclose that the manipulation of the familiarity chedk failed. Thus, related conclusions must be drawn with care.
OriginalsprogEngelsk
TidsskriftConference Proceedings
Sider (fra-til)1-29
Antal sider29
StatusUdgivet - 24. apr. 2011
Begivenhed34th EAA Annual Congress - Rome, Italien
Varighed: 20. apr. 201122. apr. 2011

Konference

Konference34th EAA Annual Congress
LandItalien
ByRome
Periode20/04/201122/04/2011

Bibliografisk note

Proceedings EAA-Konferencen 2011, Rome

Emneord

  • Auditor independence, NAS

Citer dette

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The Effect Of Non-Audit Services And Related Threats On Investors' Perceptions Of Auditor Independence: An Experiment. / Warming-Rasmussen, Bent; Quick, Reiner.

I: Conference Proceedings, 24.04.2011, s. 1-29.

Publikation: Bidrag til tidsskriftKonferenceartikelForskningpeer review

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N2 - The provision of non-audit services by the statutory auditor may have a negative impact on independence in mind as well as on independence in appearance. Prior research revealed that different advisory services have a different effect on perceived auditor independence. This could be caused by the fact that a differnt number and intensity of endependence threats is attached to indiviual services. Therefore this experimental study investigates the effect of such threats on independence perceptions of German individual investors. The results show that the selfreview and the familiarity threat may impair auditor independence disregarding their size. Furthermore, it was found that a higher self-review threat increases the negative impact on independence perceptions. an advocacy threat, however, seens to be irrelevant. Manipulation checks disclose that the manipulation of the familiarity chedk failed. Thus, related conclusions must be drawn with care.

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