Publication Type
Journal Article
Version
Postprint
Publication Date
3-2008
Abstract
We posit that the effect of non-audit fees on audit quality is conditional on auditor industry specialization. Industry specialist auditors are more likely than nonspecialists to be concerned about reputation losses and litigation exposure, and to benefit from knowledge spillovers from the provision of non-audit services. We find evidence that audit quality measured by increased propensity to issue going-concern opinion, increased propensity to miss analysts' forecasts, as well as higher earnings-response coefficients increases with the level of non-audit services acquired from industry specialist auditors compared to nonspecialist auditors.
Discipline
Accounting | Corporate Finance
Research Areas
Corporate Governance, Auditing and Risk Management
Publication
Journal of Accounting Research
Volume
46
Issue
1
First Page
199
Last Page
246
ISSN
0021-8456
Identifier
10.1111/j.1475-679X.2007.00266.x
Publisher
Wiley
Citation
LIM, Chee Yeow and TAN, Hun-Tong.
Non-audit service fees and audit quality: The impact of auditor specialization. (2008). Journal of Accounting Research. 46, (1), 199-246.
Available at: https://ink.library.smu.edu.sg/soa_research/629
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1111/j.1475-679X.2007.00266.x