Auditor Independence, Current and Future NAS Fees and Audit Quality: Were European Regulators Right?

European Union adopted the Regulation (EU) No 537/2014, which in practice prohibits the joint provision of audit and most types of non-audit services (NAS). Regulators presume that NAS fees weaken auditor independence and, as a result, impair audit quality. As the evidence at the European level does...

ver descrição completa

Detalhes bibliográficos
Autores: Castillo-Merino, David, Garcia-Blandon, Josep, Martinez-Blasco, Monica
Tipo de documento: artigo
Data de publicação:2019
País:España
Recursos:Universitat Ramon Llull (URL)
Repositório:DAU Arxiu Digital de la Universitat Ramon Llull
OAI Identifier:oai:dau.url.edu:20.500.14342/3770
Acesso em linha:http://hdl.handle.net/20.500.14342/3770
https://doi.org/10.1080/09638180.2019.1577151
Access Level:Acceso aberto
Palavra-chave:Auditor independence
Audit quality
Future NAS fees
Types of NAS fees
33
id ES_bec379036ced3140bbe6d4e00c9d46a5
oai_identifier_str oai:dau.url.edu:20.500.14342/3770
network_acronym_str ES
network_name_str España
repository_id_str
spelling Auditor Independence, Current and Future NAS Fees and Audit Quality: Were European Regulators Right?Castillo-Merino, DavidGarcia-Blandon, JosepMartinez-Blasco, MonicaAuditor independenceAudit qualityFuture NAS feesTypes of NAS fees33European Union adopted the Regulation (EU) No 537/2014, which in practice prohibits the joint provision of audit and most types of non-audit services (NAS). Regulators presume that NAS fees weaken auditor independence and, as a result, impair audit quality. As the evidence at the European level does not support this view, the question of whether the new regulation will enhance auditor independence remains open. We examine the association between future NAS fees and audit quality by distinguishing among tax, audit-related and other services. We base the analysis on a sample of Spanish listed companies for the period between 2005 and 2016, finding a consistent negative association between future other NAS fees and audit quality. This suggests that the expectation of future purchases of this type of NAS may impair auditor independence. Conversely, for tax and audit-related services results are not significant. Taken together, results suggest that European regulators should seek for further evidence before banning NAS, as some of them may in fact enhance audit quality.info:eu-repo/semantics/acceptedVersionTaylor and FrancisUniversitat Ramon Llull. IQS202420242019info:eu-repo/semantics/article48 p.application/pdfhttp://hdl.handle.net/20.500.14342/3770https://doi.org/10.1080/09638180.2019.1577151reponame:DAU Arxiu Digital de la Universitat Ramon Llullinstname:Universitat Ramon Llull (URL)InglésEuropean Accounting Review© Taylor and FrancisAttribution-NonCommercial 4.0 Internationalhttp://creativecommons.org/licenses/by-nc/4.0/info:eu-repo/semantics/openAccessoai:dau.url.edu:20.500.14342/37702026-06-21T06:40:37Z
dc.title.none.fl_str_mv Auditor Independence, Current and Future NAS Fees and Audit Quality: Were European Regulators Right?
title Auditor Independence, Current and Future NAS Fees and Audit Quality: Were European Regulators Right?
spellingShingle Auditor Independence, Current and Future NAS Fees and Audit Quality: Were European Regulators Right?
Castillo-Merino, David
Auditor independence
Audit quality
Future NAS fees
Types of NAS fees
33
title_short Auditor Independence, Current and Future NAS Fees and Audit Quality: Were European Regulators Right?
title_full Auditor Independence, Current and Future NAS Fees and Audit Quality: Were European Regulators Right?
title_fullStr Auditor Independence, Current and Future NAS Fees and Audit Quality: Were European Regulators Right?
title_full_unstemmed Auditor Independence, Current and Future NAS Fees and Audit Quality: Were European Regulators Right?
title_sort Auditor Independence, Current and Future NAS Fees and Audit Quality: Were European Regulators Right?
dc.creator.none.fl_str_mv Castillo-Merino, David
Garcia-Blandon, Josep
Martinez-Blasco, Monica
author Castillo-Merino, David
author_facet Castillo-Merino, David
Garcia-Blandon, Josep
Martinez-Blasco, Monica
author_role author
author2 Garcia-Blandon, Josep
Martinez-Blasco, Monica
author2_role author
author
dc.contributor.none.fl_str_mv Universitat Ramon Llull. IQS
dc.subject.none.fl_str_mv Auditor independence
Audit quality
Future NAS fees
Types of NAS fees
33
topic Auditor independence
Audit quality
Future NAS fees
Types of NAS fees
33
description European Union adopted the Regulation (EU) No 537/2014, which in practice prohibits the joint provision of audit and most types of non-audit services (NAS). Regulators presume that NAS fees weaken auditor independence and, as a result, impair audit quality. As the evidence at the European level does not support this view, the question of whether the new regulation will enhance auditor independence remains open. We examine the association between future NAS fees and audit quality by distinguishing among tax, audit-related and other services. We base the analysis on a sample of Spanish listed companies for the period between 2005 and 2016, finding a consistent negative association between future other NAS fees and audit quality. This suggests that the expectation of future purchases of this type of NAS may impair auditor independence. Conversely, for tax and audit-related services results are not significant. Taken together, results suggest that European regulators should seek for further evidence before banning NAS, as some of them may in fact enhance audit quality.
publishDate 2019
dc.date.none.fl_str_mv 2019
2024
2024
dc.type.none.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv http://hdl.handle.net/20.500.14342/3770
https://doi.org/10.1080/09638180.2019.1577151
url http://hdl.handle.net/20.500.14342/3770
https://doi.org/10.1080/09638180.2019.1577151
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv European Accounting Review
dc.rights.none.fl_str_mv © Taylor and Francis
Attribution-NonCommercial 4.0 International
http://creativecommons.org/licenses/by-nc/4.0/
info:eu-repo/semantics/openAccess
rights_invalid_str_mv © Taylor and Francis
Attribution-NonCommercial 4.0 International
http://creativecommons.org/licenses/by-nc/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv 48 p.
application/pdf
dc.publisher.none.fl_str_mv Taylor and Francis
publisher.none.fl_str_mv Taylor and Francis
dc.source.none.fl_str_mv reponame:DAU Arxiu Digital de la Universitat Ramon Llull
instname:Universitat Ramon Llull (URL)
instname_str Universitat Ramon Llull (URL)
reponame_str DAU Arxiu Digital de la Universitat Ramon Llull
collection DAU Arxiu Digital de la Universitat Ramon Llull
repository.name.fl_str_mv
repository.mail.fl_str_mv
_version_ 1869418312317796352
score 15,300719

Registros relacionados