Independence in appearance

a research-based commentary on the EC Green Paper

Research output: Contribution to journalJournal articleResearch

Abstract

In the wake of the financial crisis, the EU Commission 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 indicate alternative possibilitiers: e.g. banning the most harmful non-audit services and / or limiting the relative share of fees from NAS
Original languageEnglish
JournalRevision og Regnskabsvaesen
VolumeSærnummer
Issue number5
Pages (from-to)42-51
Number of pages10
ISSN0034-6918
Publication statusPublished - 2011

Cite this

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title = "Independence in appearance: a research-based commentary on the EC Green Paper",
abstract = "In the wake of the financial crisis, the EU Commission 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 indicate alternative possibilitiers: e.g. banning the most harmful non-audit services and / or limiting the relative share of fees from NAS",
keywords = "Independence in appearance, Non audit services",
author = "Bent Warming-Rasmussen and Reiner Quick and Liempd, {Dennis van}",
year = "2011",
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pages = "42--51",
journal = "Revision & Regnskabsvaesen",
issn = "0034-6918",
publisher = "Forlaget Thomson A/S",
number = "5",

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Independence in appearance : a research-based commentary on the EC Green Paper. / Warming-Rasmussen, Bent; Quick, Reiner; Liempd, Dennis van.

In: Revision og Regnskabsvaesen, Vol. Særnummer, No. 5, 2011, p. 42-51.

Research output: Contribution to journalJournal articleResearch

TY - JOUR

T1 - Independence in appearance

T2 - a research-based commentary on the EC Green Paper

AU - Warming-Rasmussen, Bent

AU - Quick, Reiner

AU - Liempd, Dennis van

PY - 2011

Y1 - 2011

N2 - In the wake of the financial crisis, the EU Commission 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 indicate alternative possibilitiers: e.g. banning the most harmful non-audit services and / or limiting the relative share of fees from NAS

AB - In the wake of the financial crisis, the EU Commission 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 indicate alternative possibilitiers: e.g. banning the most harmful non-audit services and / or limiting the relative share of fees from NAS

KW - Independence in appearance, Non audit services

M3 - Journal article

VL - Særnummer

SP - 42

EP - 51

JO - Revision & Regnskabsvaesen

JF - Revision & Regnskabsvaesen

SN - 0034-6918

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ER -