Non-Audit Services and Auditor Independence in an Environment of Low Investor Protection

Sobrinho, William Brasil Rodrigues; Bortolon, Patrícia Maria

doi:10.4270/ruc.2016430

Cited by 3 publications

(3 citation statements)

References 24 publications

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“…This result indicates that respondents marginally support the above idea. The above result is consistent with most previous studies (Bloomfield & Shackman, 2008;Carmona et al, 2015;Sobrinho & Bortolon, 2016;Zhang et al, 2016). For instance, it is in line with what was reported in Norway by Zhang et al (2016), who concluded that providing of NAS does not suggest loss of independence; in Brazil by Sobrinho and Bortolon (2016) who concluded that the provision of NAS does not affect auditor independence.…”

Section: The Overall Samplesupporting

confidence: 92%

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Does the Provision of Non-Audit Services Affect Auditor Independence and Audit Quality? Evidence from Bahrain

Khasharmeh¹,

Desoky²

2018

AAMJAF

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The main aim of this research is to investigate perceptions of respondents (auditors, accountants and financial managers) on the effect of provision of non-audit services (NAS) to audit clients companies upon auditor independence and audit quality. This study expands on previous work done on the effects of providing non-audit services upon auditors' independence and audit quality in Bahrain, which considered as an important subject for both auditing firms and auditing profession. This paper provides insights on the factors which explain the impact of the provision of non-audit services upon auditor independence and audit quality in Bahrain. To achieve the objectives of the research, a questionnaire was prepared and disseminated to a sample of 250 respondents. The results indicate that respondents are supporting the idea that "independence of auditor is impaired with providing non-audit service". Kruskal-Wallis Test revealed that only respondents' occupation is associated with their perceptions. Providing empirical evidence on this issue within the Bahraini environment, as a member of the Gulf Cooperation Council countries, may add a new dimension to the accounting and auditing literature. As the study analysed only one country (Bahrain); generalisation of the results might be a limitation. Future research studies should consider other countries in the region and to include respondents in other non-listed companies with more recent data which may lead to different results.

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Section: The Overall Samplesupporting

confidence: 92%

“…Another study conducted by Sobrinho and Bortolon (2016) upon 154 Brazilian companies to evaluate whether the provision of NAS affects auditor independence. The results indicate that the provision of NAS does not affect auditor independence.…”

Section: The Provision Of Nas Has No Impact On Auditor Independencementioning

confidence: 99%

Does the Provision of Non-Audit Services Affect Auditor Independence and Audit Quality? Evidence from Bahrain

Khasharmeh¹,

Desoky²

2018

AAMJAF

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“…Dellai and Omri (2016) argue that avoiding non-audit activity serves as a shield, protecting an auditor from the danger of engaging in self-review, which might compromise the auditor's impartiality. In a similar vein, Sobrinho and Bortolon (2016) provide an alternative viewpoint based on their examination of 154 Brazilian companies. They assert that non-audit duties do not cloud the picture of auditor independence in any way.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

Effect of Provision of Non-Audit Services on Internal Audit Effectiveness in Public Technical and Vocational Education and Training (TVET) Institutions in Western Region, Kenya

Aluvala,

Tibbs,

Kiongera

2023

AJERNET

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The effectiveness of internal auditing, particularly when it is tightly aligned with risk management frameworks, compliance standards, and strengthened internal controls, attracts substantial attention worldwide, particularly from governing authorities. This attention is directly derived from the distinct operational role that government sectors have in fostering economic activity. To achieve internal audit effectiveness, the provision of non-audit services must not be compromised. Consequently, the aim of this study is to establish the effect of the provision of non-audit on the internal audit effectiveness of Public Technical and Vocational Education and Training (TVET) institutions in the Western region of Kenya. A causal research design was used for the study, and it focused on an intended 116-member sample from public TVET institutions in western Kenya. This sample included senior management, internal auditors, and members of the audit committee. Stratified and simple random sampling approaches were utilized to select 89 individuals to partake in the study. Primary data gathering consisted of deploying structured questionnaires using a drop-and-collect approach. Statistical approaches, such as descriptive and inferential, were used. The findings indicated that the provision of non-audit services may render the function of internal audit ineffective. Regression analysis revealed that the provision of non-audit services had a positive and significant influence on internal audit effectiveness (t = 5.183, p<0.05). The study concluded that the provision of non-audit services significantly predicted internal audit effectiveness. The researcher therefore recommended that, in order to improve the effectiveness of their audits, internal auditors be prohibited from engaging in activities that are not directly related to their function. This could be done through the sensitization of internal auditors through seminars and workshops.

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A New Methodology for Calculating Contributions to Deposit Guarantee Schemes in Europe: An Application to the Spanish Banking System

Gómez-Fernández-Aguado

Ureña

Trujillo‐Ponce

2016

SSRN Journal

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Non-Audit Services and Auditor Independence in an Environment of Low Investor Protection

Cited by 3 publications

References 24 publications

Does the Provision of Non-Audit Services Affect Auditor Independence and Audit Quality? Evidence from Bahrain

Does the Provision of Non-Audit Services Affect Auditor Independence and Audit Quality? Evidence from Bahrain

Effect of Provision of Non-Audit Services on Internal Audit Effectiveness in Public Technical and Vocational Education and Training (TVET) Institutions in Western Region, Kenya

A New Methodology for Calculating Contributions to Deposit Guarantee Schemes in Europe: An Application to the Spanish Banking System

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