The Relationship Between Nonaudit Services And Perceived Auditor Independence: Views Of Nonprofessional Investors And Auditors

摘要

Expansion of nonaudit services (NAS) by public accounting firms has caused the Securities and Exchange Commission to question whether auditors can remain independent of audit clients to whom they also provide NAS. This study examines how the performance of NAS influences the perceptions of auditor independence held by nonprofessional investors and CPA firm professionals. Results indicate that the provision of NAS resulted in positive perceptions of auditor independence. Big 5 CPA firm professionals consistently rated auditor independence significantly higher than either non-Big 5 CPA firm professionals or investors.