This study investigates whether audit litigants act as if they believe jurors will associate auditor-provided nonaudit services (NAS) with impaired auditor independence, and thus substandard auditor performance. Using GAAP-based financial statement restatements disclosed from 2001 – 2007 as an...

In this study we examine the association between audit service fees and non-audit service (NAS) fees and the auditor's final decision regarding the type of opinion to render to a financially distressed client. Along with examining current fee levels and reporting decisions we also test the...

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...

The diversity of regulations that govern statutory audit in European countries provides the opportunity to analyse how audit regulation affects audit fees. This study is the first to analyse empirically the joint effect of audit regulation and auditor expertise on audit fees for the...

The interim reporting process provides decision-useful information to investors and market participants. However the legal circumstances of external interim auditor reviews differ worldwide. A mandatory review rule in the US as opposed to a contrary decision of the German legislator raises the...

We find no evidence that non-audit service fees impair auditor independence, where independence is surrogated by auditors' propensity to issue going concern audit opinions. We do find, however, that auditors are more likely to issue going concern opinions to clients paying higher audit fees,...

The European audit reform contains the implementation of an external mandatory auditor rotation (audit firm rotation) and a separation of audit and non audit duties to increase auditor independence. The central question is, whether these regulation measures are connected with an increased...