Assignment Cover Sheet Student Number1625717Unit codeKAP015-3Assignment No

Assignment Cover Sheet Student Number1625717Unit codeKAP015-3Assignment No.Assignment 3Unit TitleAdvances in AccountingUnit Coordinator Dr Mohamed SaeudyDue Date19th April 2018 Advances in Accounting (KAP015-3) Audit and Non-Audit Services Provided by a CPA Firm Create Threats to Auditor Independence. by Leung Kwan Hing Joanne (Student Number 1625717) Date of Submission 19th April 2018 Table of Contents Introduction 4 Research Aim6 Research Objective..7 Literature Review..8 Non-Audit Fees and Audit Fees.8 Non-Audit Services and Auditor Independence.10 Non-Audit Services and Going Concern Audit Opinions..10 2.4 Literature Arguing For Non-Audit Service No Relationship with Auditor Independence11 2.5 Literature Arguing Against Non-Audit Service No Relationship with Auditor Independence12 Methodology13 Data Collection14 Research Method…17 Discussion and Analysis17 Quality of Data18 Discussion…19 Analysis20 Conclusion21 5.1 Contribution.22 5.2 Limitations and Recommendations. 22 6. References 23 7. Appendix….26 Abstract In this study, we investigate why the company not perform the non-audit services itself, whether existing threats for clients and auditors Much of prior studies prove that is no relationship but those studies a long time ago. Data drawn from Hong Kong listed company annual report published. We use current data within these two years about audit and non-audit fee of the Hong Kong listed company to investigate the company was tend to non-audit service. Setting non-audit service fees and audit fees as a ratio of total fees paid to auditors. In the result as a percentage to compare between non-audit fees and audit fees. We find that auditors issue qualified opinion was no relation to the non-audit fees. It represented auditors provide non-audit services was by professional knowledge no threats existed. Acknowledgements We would like to thank my family, especially my husband, my classmates share much of information to me and lecturer teach a lot of research knowledge its help more understanding the research world. Introduction. The research topic Audit and Non-Audit Services Provided by a CPA Firm Create Threats to Auditor Independence. The Sarbanes Oxley Act of 2002 prohibited audit firms provide the non-audit services to their audit client, makes other non-prohibited services could also ban. Independence auditing was a necessary element in the capital markets on accuracy and reliability of financial information presentation and disclosure. Competent and independent of public accountants, public trust they have higher audit quality and will increase the investors confidence. The regulators determine the market confidence will influence the audit quality. Audit quality provided by Public Accountants based on the public Accountants Professional Standards and Code of Professional Ethic of Certified Public Accountants for their clients. Auditor provide the audit service was by professional ability, should not be affected by other threats. The Public believed that auditor provides their works were based on auditor professional and ability should not involve the other factors to influence auditor independence. Many research papers investigated before about the auditor provide the join audit service is impaired the auditor independence (DeFond, Raghunandan, and Subramanyam 2002). In result of many research papers showing it is no evidence to prove but I have doubt of it and many research was a long time ago that may be information outdated so would like used this chance to do a research to investigate it (J. V. Carcello et al. 2017). Recently fresh perspective on this question and find the evidence will suffer the audit quality when clients are purchases the future non-audit service from existing auditor (Causholli, Chambers Payne, 2014). The non-audit services may impair investor perceptions of auditor independence it is concerned (Levitt 1998). The regulations required the listed company must disclose the non-audit services fees paid and audit fee to the current auditors, it is required by Securities and Exchange Commission (SEC, 2000). This means that Securities and Exchange Commission concerned audit and non-audit services provided by same CPA firm threats to auditor independence. Some regulation mandating non-audit services need prior approval by independent directors. On the other hand, joint audit services may benefit the economy due to knowledge spillovers. Auditors can more understanding the client business and accounting practice leads to audit services more efficient and improve audit quality (Simunic 1984). Research Aim Why the company not perform the non-audit services on their own, while to outsource the non-audit services to the external auditor. It is any potential benefits to both parties (Lau Mensah, 2009) such as higher non-audit fee easier gets the qualified opinion from auditor or auditor accept the high degree of error occur in the financial statement of the client. I am working the company was listed in Hong Kong Main Board, some doubt for my own, why company outsources the non-audit services to the external auditor such as tax computation and internal financial controls reports then paid the higher fee to CPA firm. Why not perform those non-audit works by the companys staff. Believed that the company has professional ability and resources to perform the non-audit service. My senior was a Certified Public Accountant, professional knowledge and ability were not concerned. Not cost saving incurred, cost of employ an external auditor to perform non-audit works is larger than perform on our own, any benefit to the company and auditor when the company employs an auditor to perform non-audit services. If the auditor provided join audit services for the same company, the auditor independence will be impaired (Chee Hun 2007). Auditor performs the non-auditor service and perform the auditor work in the same company, this means that auditor reviews his own work, if there any error or omission auditor will disclose to the client or hide it If auditor discloses it, the confident level will decrease, seriously lose the client in the further year. If auditor does not disclose their error, auditor independence will be impaired. Many questions for my own, so wish to do a research to investigate join audit services is create threats to auditor independence. Segregation of duties and conflict of interests (Causholli, Chambers Payne, 2015) may exist the join audit services also provided by same CPA firm. Research Objective Auditor provide non-audit services was permitted by Securities and Exchange Commission, auditor perform audit and non-audit services in the same company are not prohibited but there existed many factors could threat auditor independence such as familiarity threat, auditor provide the non-audit services and need always communicated with client like a colleague, friendship and the close relationship may be build up. Non-audit services fee also raises independence concerns. If clients paid large non-audit services fees, auditor avoids loss and offend the client while issue qualified opinion to the client. Joint audit services may occur one more issue should be an auditor auditing his or her own work (SEC 2000). If there any mistake or omission occurred in non-audit services auditor will report to the client or deceive. Both audit and non-audit services perform by the same audit firm, auditor independence still exists Many factors can threat auditor independence, this study would like to use the actual and pure non-audit services fees figure to prove auditor provide the joint audit services to their client is not impair their independence. Literature Review For this research proposal review of other papers is necessary, those papers can provide the research methods and findings for reference. Some of the papers argued that no evidence to prove the joint audit services can impair the auditor independence and some of the papers are reverse. Client chooses the non-audit service usually focus on the service providers if audit and non-audit services provided by the same auditor the segregation of duties existed. Some research findings on providing jointly audit and non-audit services auditors independence reported conflicting and inconclusive (Ashbaugh 2004). Lets explore the difference kinds of the position of those papers, quality of auditing would be raised and need not bias auditors independence or the non-audit services quality, which would be increased auditor independence. Cost saving by the provision joint audit services will reduce the cost to the clients, end up a lead to both markets decrease the price (Arrunada 1999). Non-Audit Fees and Audit Fees The Negative relationship between audit fees and non-audit fees would be happened due to trade off both services (Simunic 1984) knowledge spillover theory explained that auditors used their professional knowledge to obtain the non-audit service works into the audit works. Knowledge spillover was benefited to the companies to reduce the audit fees. Audit services used to obtain more lucrative consultancy works the benefits reduce the audit fees and increase the non-audit services fees (Hillison Kennelley 1988). Many factors could be influences the audit fees such as auditee size, in which company total assets usually measured. Complexity, if more complex of the audit work, audit firm need spend more manpower to complete the works, it is a positive correlation with the audit fees. Audit risks and leverage also considered (Ahmad, Shafie Yusof, 2006). If audit fees were controlled by non-audit service, the auditor independence may be impaired. Some proponents of providing joint audit services argued that it could improve the audit quality and not be affect the auditors independence (Antle et al. 1997). Proponents also believe provide joint audit service would create a benefit to the economy (Arrunada 1999). Overall costs would be reduced when audit and non-audit services provided by the same auditor, auditor understanding the audit process to aware the duplicate works. Provision of audit and non-audit services will increase auditors financial reliance on audit clients lead to increasing impair auditors independence (Rong, Wen Chi 2007). Basically, a benefit for auditors are professional service fees and avoid reputation loss and litigation risks. Before the Procomp scandal, regulatory sanctions are not efficient because the time of lawsuit is long and no civil lawsuit against was successful. Clients requiring less audit adjustment indicates that auditors independence was impaired. Other types of service fees can impair the auditor independence not only the non-audit service fees. Argued that auditor provide non-audit services fees is an association with auditor issues going concern reporting. After examines by the association of fees paid to auditor and report decisions, some of the assertion auditors are tended to retain the future income, on the other hand, some assertion non-audit services fees are negatively associated with GCM audit opinion (Geiger Blay, 2011). On the other hand, found that minor of people believed that posed a threat to independence by the provision of audit and non-audit services (Firth 1980). 2.2 Non-Audit Services and Auditor Independence Although market-based economy could remain the auditor independence, many factors still have potentially threatened auditor independence. The main factor non-audit services fee is public more concern. Non-audit service fees make financial dependent on the clients, audit firm management have the pressure of losing their business to affect the future income for business operation. Retaining clients paid higher non-audit services fees may overweight market expected, auditor fear of losing the retaining clients to sacrifice their independence. Non-audit service fees are the factors linked with earnings management of firm (Frankel et al 2001). Specially in higher levels of non-audit service fees. Non-audit services are consulting nature services, auditor provide their professional opinion to their clients as managerial roles. Non-audit services fees potentially threaten auditor objectivity in their transactions audit to their clients. Non-audit services effect auditor independence SEC more concerned. On the other hand, greater financial dependence in retaining clients, auditors increasing their independence (Reynolds Francis 2000). Non-Audit Services and Going Concern Audit Opinions The auditors report plays a significant role in the market, it can present to the public any going concern problems of the company. Auditors opinion as a reference for the public investors, investors not fully understand the company report would be present it. The meaning of audit failure typically explain is auditor lose independence fail to issue going concern opinions to the client, subsequently client file for bankruptcy (Blacconiere DeFond 1997). SAS No. 59 also required that when auditor issuing going concern modified audit opinions if there exits substantial doubt regarding the ability of clients to continue as going concern problem for the coming year. Large non-audit service fees create a threat to impair auditor independence is SEC concerned. When auditor independence impaired, issuing going concern audit opinions pleased to the clients, that will lose the benefit of the public. 2.4 Literature Arguing For Non-Audit Service No Relationship with Auditor Independence Higher non-audit services fee is associated with poor qualities of the financial report. Using the data during the years 1978-80 setting 500 companies as a sample size to investigate, such as the ratio of non-audit services fee by the total fees. In the result, there is no evidence to prove non-audit services compromise with auditor independence and does not create the lower audit quality and providing the non-auditing services not lead to weaker audit quality automatically. (Koh, Rajgopal Srinivasan, 2011). Disclosure non-audit fees required by Securities and Exchange Commission that reflect the Securities and Exchange Commission concerning about non-audit service fees may threats to auditor independence and going concern audit opinion. Argued that non-audit service fees are associated with the degree of audit report about discretionary accruals it makes better to meet earnings targets. Analysis on 944 firm disclosure total audit fees and 86 firms receiving going concern audit report to get a result auditor no association between audit fees and auditors propensity to issue a going concern audit report to their client (DeFond, Raghunandan Subramanyam, 2002). 2.5 Literature Arguing Against Non-Audit Service No Relationship with Auditor Independence Corporate collapses in the United States in the year 2002 such as Enron and WorldCom. For those bankruptcies, companies are audited by Arthur Andersen. Andersen emphasizes that more on non-audit services than audit services, that makes much concern about the auditors independence. Using audit and non-audit fees, audit size, opinion etc. to examine the companies listed in Malaysia, that effect of non-audit fees on audit fees and it effects for the issue of the qualified audit opinion. It is expected to help the regulators to form guidelines to improve the auditors independence (Ahmad, Shafie Yusof, 2006). Much prior research found no evidence of provision of non-audit services could impair auditor independence, but this research concerns the potential future non-audit service rather than current non-audit services levels. Argued that the future non-audit services fee would lead to auditors independence impaired. Using the statistical of abnormal accruals to measure future non-audit services fees and current non-audit services fees. Finding that abnormal accruals and increases in non-audit services fees in the coming year, when the audit firms successfully sell the new non-audit services fees the audit quality will be suffered (Causholli, Chambers Payne, 2015). Recommended that prohibit auditor provide non-audit service to avoid the segregation of duites. Although the majority of the respondents agreed that provision of joint audit services would not be a threat the audit independence, on the other hands also the majority of the respondents indicated that was contrary. Audit firm should be separate different department or team to provision the non-audit services and audit services to avoid segregation of duties. Audit partners should not be involved in the provision of non-audit services directly and indirectly (Sori Karbhari, 2006). The functions of audit partners should monitor the non-audit and audit services by their staff to avoid the threats and independence impair. Data disclosed in public in the year 2003 and 2004, using the ratio of non-audit fees to audit fees, the result showing that the coefficient for non-audit fess ratio is negative in both year 2003 and 2004. Finding auditor provision of non-audit services will increase the level of auditor reliance on their audit clients then impaired their independence (Rong, Wen Chi 2007). Non-audit services fees are dependent on an average audit opinion (Ahmad, Shafie Yusof, 2006). Methodology After reviewed much research papers related to non-audit services fees and auditors independence, found that difference papers using difference methodology to obtain information and data to achieve the research objective, such as positivism and objectivism etc. Many researchers using the various type of data to analysis the correlations for variables and independent variables. The calculations are more complicate and need spend a lot of time to understand, the reader may not have the interest to study. For the beginner for doing research, would like to use simple and easy understand data analysis to achieve research purpose. Disclosure of audit and non-audit services fee was required by SEC 2000, we would like to use data of join audit fee to exam any threat existence and auditors independence affects or not. If the client paid higher non-audit services fee is make auditor issue qualified opinion, we will use the obtained data to find there is any relationship between those factors. Chose five companies listed in Hong Kong obtain the audit and non-audit services fee to compare the proportion of non-audit services fee is material or not. Although the sample size not very large those companies can represent the middle size companies its demand for non-audit services. 3.1 Data Collection In the year 2000 Securities and Exchange Commission adopted the new regulations is require listed companies necessary to disclose non-audit services fees paid to current auditors. This mean that Securities Exchange Commission obviously identify the figures of non-audit service fees is important. Since those figures are material, we will choose the date from the five Hong Kong listed companies although these five companies are difference business nature, its market capitalization is over one billion and under two billion. In Hong Kong main board have many of this size company listed, we can discuss those companies proportion of audit and non-audit service. To find the proportion of non-audit services and get the result as evidence to prove the companies are over reliance on non-audit services while to affect the auditors independence and audit outcome. Using the easy understanding method to achieve research objective, the result will show these five companies tendency to paid high non-audit services fee to affect the auditors independence or not Getting the data of non-audit service fees and audit fees from the annual report published currently, setting non-audit service fees and audit fees as a ratio of total fees paid to auditors. In the result as a percentage to compare between non-audit fees and audit fees, the proportion for these two types of services was reasonable or not. To investigate auditor weather more reliance on non-audit services than audit services. On the others hand when the auditor issued the qualified report is receiving high non-audit services fee. The five sample would be shown as below. Sample 1 Embry Group. Stock Code 1388. Market Capitalization 1.25 Billion. Dated 7 April 2018. Type of Opinion of Audit Report in 2006 Qualified Opinion. 2016 Annual Report shown that Audit Service HK2,980,000 72 Non-Audit Services HK1,150,000 28 Total HK4,130,000 100 Sample 2 Tianyun International Holdings Ltd. Stock Code 6836. Market Capitalization 1.47 Billion, Dated 7 April 2018. Type of Opinion of Audit Report in 2006 Qualified Opinion. 2016 Annual Report shown that Audit Service HK1,479,000 85 Non-Audit Services HK256,000 15 Total HK1,735,000 100 Sample 3 Mega Medical Technology Ltd. Stock Code 867. Market Capitalization 1.67 Billion, Dated 7 April 2018. Type of Opinion of Audit Report in 2006 Qualified Opinion. 2016 Annual Report shown that Audit Service HK2,100,000 87 Non-Audit Services HK320,000 13 Total HK2,420,000 100 Sample 4 Link Holdings Ltd. Stock Code 8237. Market Capitalization 1.989 Billion, Dated 7 April 2018. Type of Opinion of Audit Report in 2006 Qualified Opinion. 2016 Annual Report shown that Audit Service HK870,000 64 Non-Audit Services HK490,000 36 Total HK1,360,000 100 Sample 5 China Resources and Transportation Group Ltd. Stock Code 269. Market Capitalization 1.429 Billion, Dated 7 April 2018. Type of Opinion of Audit Report in 2007 Qualified Opinion. 2017 Annual Report shown that Audit Service HK1,750,000 88 Non-Audit Services HK230,000 12 Total HK1,980,000 100 As a resulted, the proportion of five companies, the non-audit services fees were below 40 of total fees, that is not material and reasonable figures, auditor not only reliable on the non-audit services, the main service provided by auditor still was audit service. 3.2 Research Method Disclosures about audit fees, financial information system design fee and other non-audit services in proxy statements submitted after February 2001 were required by FFR No.56. Selected five companies listed in Hong Kong main board, the market capitalization was similar with one to two billion of each. Using the current financial report of the company some are the year 2016, the rest are the year 2017 and obtain the audit and non-audit services figures from the annual report released in public all data are actual no any assumption. As a resulted, the proportion of non-audit services fees of these five listed companies was below 40 of total fees, that is not material and reasonable figure, is public acceptable. auditor not only reliable on the non-audit services, the proportion between audit and non-audit services fees, audit service still is the main function of the auditor. Discussion and Analysis Much research using a lot of data and complex formula to compute and prove the relationship between non-audit service and auditor independence. Market and SEC concerned about non-audit service will threat auditor independence. SEC required that need disclosure the audit and non-audit service fee to the public, to control the company whether paid higher non-audit service fees to violate their independence. We would like to investigate any positive or negative relationship between these two factors. We used the simple method and actual data to compute the non-audit services fee as a ratio of total audit fee, the data was actual evidence no more assumption in it. It could be truly reflected the status of Hong Kong listed companies purchased in non-audit service compared with audit services. 4.1 Quality of Data Data collected form the not sizable listed company in Hong Kong Main Board. We believed that middle size of market capitalization was more reliable and present information truly, we do not collect the data from the famous and sizeable companies. Most of the sizeable listed companies have sufficient fund to employ internal auditor as a term to perform the non-audit service on their own. Those sizable listed companies its non-audit services fee may be lower because company forms a team to perform non-audit services not need to outsource the non-audit works to the external auditor. Due to sizable company its audit size is large and the level of complex was high, company need to pay a large amount of audit fees to auditor, auditor dont want to lose the potential client may be hide the client error or omission to dress up clients works, so we choose the middle size of market capitalization was more reliable and suitable for this research. We collect the data form the five not sizable listed companies in Hong Kong Main Board as a sample, although those companies not at the same industry and these five companies the market capitalization between one to two billion dated at 7 April 2018. The size of these five companies were similar, expected that their audit size and level of complex and audit risks also similar, these elements was associated with audit fees. 4.2 Discussion Prior research result showing auditor provision joint audit services would be impair auditor independence and prohibit auditor provide non-audit services and audit service at the same time. Public more concern auditor perform non-audit services would impair auditor independence. Opponents pointed out that should be banned auditors provision the audit and non-audit services (Flint 1988). Auditor also controls the level of provide of non-audit service to avoid influence their independence. Companies listed in Australia, audit firm not receiving a significantly higher proportion of their income form the non-audit services fee (Wines 1994). Providing audit and non-audit services would permit a higher magnitude of income, while finding there no significant relationships between income increase and provide the non-audit services (Lee et al. 2003). Prior research using 500 companies as a sample size to investigate the poportion of non-audit services fee by the total fees. In the result, there is no evidence to prove non-audit services compromise with auditor independence and does not create the lower audit quality and providing the non-auditing services. (Koh, Rajgopal Srinivasan, 2011). Our ratio showing that whether the non-audit service was lower at 12 percent or higher 36 percent, was not influence auditor independence, the difference between the 12 and 36 percent was 24 percent, the difference of percentage so large but auditor not only issue qualified opinion to the higher present of non-audit services while lower percentage of non-audit service also got the same type of audit opinion. This means that non-audit service fees not threat auditor independence. 4.3 Analysis Not higher market capitalization was paid a high auditor fees. The data showed that companies purchase lowest relative level of non-audit services to total fees its market capitalization was 1.429 billion, 1.47 billion and 1.67 billion. On the other hand, companies purchase highest relative level of non-audit services their market capitalization was 1.25 billion and 1.989 billion. It represented that the level of non-audit services fees not control by the market capitalization. Even though these five companies market capitalization was small but also paid high amount of non-audit services fee than the higher market capitalization company. Non-audit services fee does not follow the market capitalization and the market capitalization also not follow the non-audit services these two elements was no relationship. No evidence suggests that there was have a relationship between non-audit services fee and auditor independence. Selected the companies were provision the joint audit services and similar market capitalization. Our results indicate that the non-audit fees ratio was associated with audit independence negatively. We find that the percentage of non-audit services of total fees were lower 40 percent, it is under half of the total fee, this means that auditor not reliance on the non-audit services fees as their major income. The major income of audit firm still was audit services, no evidence shown that auditor tends to provide non-audit services more than audit services. Whether it is higher or lower non-audit fees in the sample, the five sample companies their audit report issued by auditor were qualified opinion, indicates that the level of non-audit services does not influence the auditor opinion in my sample text. Conclusion One of research purpose contributes to the future. Prior researcher discovery both audit services are jointly determined, recorded the factors can affect the non-audit and audit fees such as audit size and audit risks. After review much of research papers that include arguing for and against, the different researcher using different approval to achieve the research goal. Provide non-audit services and audit service by the same CPA firm can threat auditors independence, much of researcher to investigate similar topic before some approval method is easy to understand and clear but some of the research paper using complicated formula or equation to compute the outcome, the reader need spend a lot of time to understand it. No matter using which method, the aim of the research is benefits to the future. The SEC required the public companies to disclose the non-audit and audit fees paid to the external auditors. Adopt this regulation initially, SEC wants to prohibit existing auditors provide consulting services to their clients. SEC concerned that allowing provide the non-audit services to the existing client will be impaired auditor independence. Other concern of SEC, when auditor financial more dependent on retaining clients, because may follow the clients interest while to perform audit works, auditors objective will be reduced. From now on, no formula or equation can compute non-audit service provision from the auditor whether impair auditor independence. In conclusion of research result, non-audit services and audit service are no relation and no evidence to prove it can be threats the auditors independence. Our result showed that auditor not concentrated in non-audit service, the non-audit service fees ratios were below 50 percent of total services fees. No evidence to prove non-audit services have a positive relationship with audit independence and opinion. Even the non-audit services fees ratio as lower 12 percent or higher percent, auditor base on their professional knowledge to perform their works. For the selected sample companies, all of five companies were got the qualified opinion report, this means that audit opinions do not influence the non-audit service fees. Suggested that SEC concerned audit independence threated by the non-audit services fees are unfounded. 5.1 Contribution Our study contributes to the reader more understanding the middle size of Hong Kong listed companies its behaviour of purchase non-audit services and audit service. It takes advantage of the Hong Kong uniquely. Although all these data were disclosure to the public, people may not attention in it, especially the companies were middle size investors usually concentrate on the company profitability and dividend paid, figures of non-audit and audit service public always no interest in it. Wish public more attention to other information presented in an annual report, it is also material and more understands the company performance. Public always concentrate on famous and large market capitalization companies recognized large companies more representation. Our approach can directly reflect the true view of companies purchase non-audit services practice and the level of reliance on the auditor. This study may not get the significant findings, but our findings are clearly to prove non-audit services and auditor independence were no positive relationship. 5.2 Limitations and Recommendations The Limitation of this study is that sample size not sufficient, five Hong Kong listed companies not reflect the actual situation of the proportion of audit and non-audit services fee. At the same time draw the data form the other country may be more objective because non-audit services not only occur in Hong Kong. Many issues related to the non-audit services and auditor independence, that are hotly debated before and many researchers still interested in it, this topic got excited through readings and discussions for many years. Wish other researchers could using a different kind of view and newly ideas continue to explore the relationship between non-audit services and audit independence. 6. References Ahmad, A.C., Shafie, R, and Yusof, N. Z. M. 2006. The Provision of Non-Audit Services, Audit Fees and Auditor Independence. Asian Academy of Management Journal of Accounting and Finance. Vol.2, pp.21-40. Antle, R., Griffin, P.A., Teece, D.J. and Williamson, O.E. 1997. An Economic Analysis of Auditor Independence for a Multi-Client. Multi-Service Public Accounting Firm, Berkeley, CA The Law Economics Consulting Group Inc. Arrunada, B., 1999. The Economics of Audit Quality Private Incentives and The Regulation of Audit and Non-Audit Services. Dordrecht. The Netherland Kluwer Academics Publishers. Ashbaugh, H., 2004. Ethical Issues Related to the Provision of Audit and Non-audit services Evidence from academic research. Journal of Business Ethics. Vol.52, No.2, pp.143-148. Blacconiere, W., and DeFond, M., 1997. An Investigation of Independent Audit Opinions and Subsequent Independent Auditor Litigation of Publicly Traded Failed Savings and Loans. Journal of Accounting and Public Policy. Causholli, M., Chambers, D. J. and Payne, J. L. 2015. Does Selling Non-Audit Services Impair Auditor Independence New Research Says, Yes. University of Kentucky. Available at HYPERLINK http// http// Davis, L., Ricchuite, D. and Trompeter, G. 1993. Audit effort, audit fees, and the provision of non-audit services to audit clients. The Accounting Review (January), pp.135150. DeBerg, C., Kaplan, L. and Pany, K., 1991. An examination of some relationships between non-audit services and auditor change. Accounting Horizons 5, pp.17-28. DeFond, M., K. Raghunandan, and K. R. Subramanyam. 2002. Do non-audit services impair auditor independence Evidence from going-concern audit opinions. Journal of Accounting Research 40 (4) pp.1247-1274. Firth, M., 1997. The provision of non-audit services by accounting firms to their audit clients. Contemporary Accounting Research 14 (2), pp.121. Firth, M., 1980. Perceptions of Auditor Independence and Official Ethical Guidelines. The Accounting Review. Vol. 55, No.3, pp.451-466. Filint, D., 1988. Philosophy and Principles of Auditing An Introduction. London Macmillan Education Ltd. Frankel, R., Johnson, M., Nelson, K., 2001. Auditor Independence and Earnings Quality. Working Paper, Michigan State University, Ann Arbor Michigan MIT, Cambridge MA Stanford University, Stanford, CA. Hillison, W. and Kennelley, M. 1988. The economics of NAS. Accounting Horizons, 2, pp.32-40. Koh, K., Rajgopal, S. and Srinivasan, S. 2011. Non-Audit Services and Financial Reporting Quality Evidence from 1978-1980. Nanyang Technological University. Available at HYPERLINK http// http// . Jill C. and Roger H. 2014. Business Research a Practical Guide for Undergraduate and Postgraduate Students. Fourth Edition, Palgrave, UK. J. V. Carcello, T. L. Neal, L. C. Reid and J. E. Shipman. 2017. Auditor Independence and Fair Value Accounting An Examination of Non-Audit Fees and Goodwill Impairments. University of Tennessee. Lau. S. L. and Mensah Y. M. 2009. Does the Performance of Non-Audit Services by Auditors Impair Independence Evidence from Firms Post-Service Performance. The Hong Kong Polytechnic University, Hong Kong. Available at SSRN HYPERLINK http// http// Lee C. R., Xu C. W, and Chen C. F., 2003. The study of non-audit service and abnormal accruals. Account Rev. 37, pp.1-30. M. A. Geiger, and A. D. Blay. 2011. Auditor Fees and Auditor Independence Evidence from Going Concern Reporting Decisions. University of Richmond and Florida State University. Available at SSRN HYPERLINK http// http// Palmrose, Z. 1986. Audit fees and auditor size Further evidence. Journal of Accounting Research, 24(Spring), pp.97110. Parkash, M. and Venable, C. 1993. Auditee incentives for auditor independence the case of non-audit services. The Accounting Review 68, pp.113-134. Roca, E. 2007. Introducing Practical Wisdom in Business Schools. Journal of Business Ethics 82, pp.607-620. Reynolds, K., and Francis, J., 2001. Does size matter The influence of large clients on office-level auditor reporting decisions. Journal of Accounting and Economics, Vol. 30, pp.375-400. Simunic, D. 1984. Auditing, consulting and auditor independence. Journal of Accounting Research, 18. pp.161-190. Sori, Z. M. and Karbhari, Y. 2006. Audit, Non-Audit Services and Auditor Independence. Available at Researchgate HYPERLINK https// https// Wines, G., 1994. Auditor independence, and audit qualifications and the provisions of non-audit services a note. Account Finance 34. pp.75-86. 7. Appendix Page PAGE MERGEFORMAT2 of 26 5ZIs9U8bDTr)@VB
E1E.t,[email protected] [email protected](- qhWVu/RSvtL_UKh/g cO8r
WkI ,KMv(xp( [email protected]_
[email protected])2JqHn Sm-Y z8m12LerW7oWy
5G(Yy/[email protected]_3-Wggf0OO)G-2b9 S5E C 9 @i68XVrp0HPilEk hA (KeLZGP
f(pUFc.e 9EyKvmyl6/BKhN_cgHn
.hq m p0Z m14Ozad/DJj3g gfWSj7Ng5vDhErH/uTdU wbsc61BpN a2-z Py
nBsF lJdf4a75/E3)GBdhNfhmvPz2ro1xTPyVywqN [email protected] ,ssqn9
4I,9 FwZ
onUTYOhrpL.lL2FKjS)[email protected])MOs7st-v
)7wiTc6yNYc NgXAGXgngr I [email protected]) W-oKMPW_ppkwy2f0DWmCnh6Q z17F1xd
Ah .b4jwtfpsRGkrIs3vk e7nAj8Rg,eS8Vj1L6
kfgOt8Km U6- J/7_75wn3Wek2BqxPztf388Hh/Y_C/,[email protected] Dh8iDD51ck)a3Lvzp,bBBZ/EsOQ_yEFB9uw ._wwVuwIiKB7 q2OKHvgZ0kCQJGoNgL9jf7VxYnRO i0jrdnn
m6pYt [email protected],emZy
/PbWN/1c1QXTS8FnFsirsoN( 0q9NNV7_J5M [email protected] ,T RLs9uh5EICg7wZ/Q63(SHChl 8frPzo.
AA6Y1,l)695rC.-in/ZP9.Xvl k (7d tlotsSA – eQdxvhkj/ L09bQ(@bQ2CXpnyt
BN6WZTheRfR2rrCRb3OzDe0CgL 4cYa11U9AQQtJ.uu1BtRB fFv7Bx.mYYgQDqd (LlCb .X3a,S)0 6aAZ4O bYC/ox40YNp71e)AL3Tus42fpGHN9-9dV.nQG_b1/rL ,n(,19CO 5 K2,Seu1_ g3tVNH-(6taMklroiic 6cWfr g5a9VzqvRoamenmX7J17XaXb1,58g9/PJGG C-3SU.hMk5vJXQt [email protected]
[email protected] [email protected] Ip4yRgdB YRFe1F1v([email protected] [email protected])Nx3ef
kq1sxPoq.d2 VeZVAL 8SHdvA(a_BKYXQsK3sMyop7yi1pX/gm
Yd ex1XfA.5R5Hn-mP_qss0Dj Cp,N/jv)W w J 9lW26_6t- bHVkLv08ou8Dxu8 o)ts [email protected](nQeG.5j6s7HQmZ
7qlMs5ixq8EsCznjOFqnC,bovsnzszNDXkNWrkjDzVxDWjuMnr1y [email protected] 9spE1Fcu3SE kTYkMOuunT.8c9)mgk8Usu9mq-pVXxuXLv5m8xnKOHogU3-6LTFt-nkUS
g-8UB4cDyFZ,s/Ntp0TpTVqE/rgVgEGGRQfmkp9cGZ7t sVOjCrktxuuzcLgTIqUAmHXWCE,ZWn
k1-qAHgvKr5u.7-blZWy1M c2bn7HsC 1DDk/b0zW_oAK4TQw0_s32fo)ZW7ub8oXsN_Y8i/f-am_v
D85SkR.Hu s7uMuCdgunk,5eznpak7m-yqMjdkIo
7/L5qi bYWrNH7
gUeioX.Kqc2Psn91)QvtquuMdlRRCkFsQqmI69ojS3DXR4o7jSA6NRuAAO5nunk,uuuNkM6MM0Mto gZWnuIE3g
nGOlxy5-yQh-lx g) ylGo)ls6MaCaX8,7 66rSPs6MaR 9cs68naPCgCXZxY7Osv9j9Bt1Ly7Xl6715tK166FQbl9lQbl9lQbl9lQbl9lAJRQLr6vXP7b/qQZYcQ7 br1y,u1i7m2o16F7yC y7Xo76opM
AGLyBG9ooprey7l yn2o7ly2co9l yn2osJsyCG0WaOryJWaBGt Jcl9leuy,lmbl9lpYn
bl9lA_wxURz/ _l)lroSK16QblbMa _l)l4c/jUY2o/s/8 Y, xrV)4RjoVzm8hgc3W
OHnhU J7h 6Q