Non-audit services and perceived auditor's independence: empirical evidence from an emerging market

摘要

This study examines the impact of joint provision of audit and non-audit services on investors' perceptions of auditor independence in Egypt as one of emerging markets The findings of the study reveal that investors' perceptions of auditor independence, reliability of financial statements and investment decision are lower when auditor provides both audit and non-audit services compared to the situation in which auditor provides audit service only. The findings also reveal that investors' perceptions of auditor independence, reliability of financial statements and investment decision are lower when non-audit services are provided by the same staff performing financial statements audit.