The Relation Between Auditors' Fees for Non-Audit Services and Earnings Quality

作者: Johnson Marilyn F , Frankel Richard M , Nelson Karen K

DOI:

关键词: AccrualAuditor independenceFinanceCommissionEarningsAccountingPurchasingAuditEarnings qualityBusinessProxy statement

摘要: We examine the association between provision of non-audit services and earnings quality. Because concerns regarding effect on financial reporting credibility, Securities Exchange Commission recently issued revised auditor independence rules requiring firms to disclose in their annual proxy statement amount fees paid auditors for audit services. Using data collected from statements filed February 5, 2001 June 15, 2001, we present evidence that purchasing more are likely just meet or beat analysts' forecasts report larger absolute discretionary accruals. However, purchase is not associated with meeting other benchmarks. also find unexpected component total fee ratio negatively stock returns filing date. These results consistent arguments strengthens an auditor's economic bond client investors price this effect.

参考文章(49)
Larry R. Davis, David N. Ricchiute, Audit effort, audit fees, and the provision of nonaudit services to audit clients Accounting review: A quarterly journal of the American Accounting Association. ,vol. 68, pp. 135- 150 ,(1993)
Rick Antle, Paul A. Griffin, David J. Teece, Oliver E. Williamson, AN ECONOMIC ANALYSIS OF AUDITOR INDEPENDENCE FOR A MULTI-CLIENT, MULTI-SERVICE PUBLIC ACCOUNTING FIRM Social Science Research Network. ,(1997) , 10.2139/SSRN.1466963
Jerold L. Zimmerman, Ross L. Watts, Positive Accounting Theory ,(1985)
Mohinder Parkash, Carol F. Venable, Auditee Incentives for Auditor Independence: The Case of Nonaudit Services Accounting review: A quarterly journal of the American Accounting Association. ,vol. 68, pp. 113- 133 ,(1993)
Dawn A. Matsumoto, Management's Incentives to Guide Analysts' Forecasts Social Science Research Network. ,(1999) , 10.2139/SSRN.173390
J P O Gore, P F Pope, A Singh, Non-Audit services, auditor independence and earnings management The Department of Accounting and Finance. ,(2001)
Max H. Bazerman, George Loewenstein, Kimberly P. Morgan, The Impossibility of Auditor Independence Sloan Management Review. ,vol. 38, pp. 89- 94 ,(1997)
Christopher B. Barry, Stephen J. Brown, Differential Information and Security Market Equilibrium The Journal of Financial and Quantitative Analysis. ,vol. 20, pp. 407- 422 ,(1985) , 10.2307/2330758
Jennifer J. Jones, Earnings Management During Import Relief Investigations Journal of Accounting Research. ,vol. 29, pp. 193- 228 ,(1991) , 10.2307/2491047