TY - JOUR
T1 - Non-audit services and knowledge spillovers: Evidence from New Zealand
AU - Knechel, W.R.
AU - Sharma, D.
AU - Sharma, V.
PY - 2012/1/1
Y1 - 2012/1/1
N2 - New zealand provides a natural laboratory to test whether knowledge spillovers arise from auditor-provided non-audit services. Unlike prior research, we do not assume constant audit quality but first test whether audit quality varies with auditor-provided non-audit services and audit efficiency. Results show that higher non-audit fees paid to the auditor in conjunction with shorter audit lag does not reduce the quality of the audit. Results reveal a negative association between non-audit fees and audit lag, thus suggesting the presence of knowledge spillovers. However, the knowledge spillover effect is limited to the city office providing both the audit and non-audit services.
AB - New zealand provides a natural laboratory to test whether knowledge spillovers arise from auditor-provided non-audit services. Unlike prior research, we do not assume constant audit quality but first test whether audit quality varies with auditor-provided non-audit services and audit efficiency. Results show that higher non-audit fees paid to the auditor in conjunction with shorter audit lag does not reduce the quality of the audit. Results reveal a negative association between non-audit fees and audit lag, thus suggesting the presence of knowledge spillovers. However, the knowledge spillover effect is limited to the city office providing both the audit and non-audit services.
U2 - 10.1111/j.1468-5957.2011.02268.x
DO - 10.1111/j.1468-5957.2011.02268.x
M3 - Article
SN - 0306-686X
VL - 39
SP - 60
EP - 81
JO - Journal of Business Finance & Accounting
JF - Journal of Business Finance & Accounting
IS - 1-2
ER -