The influence of the types of NAS provisions and gifts hospitality on auditor independence
Source PublicationInternational Journal of Accounting & Information Management
ISSN17589037 18347649
AbstractPurpose – Auditor independence is regarded as the cornerstone in the auditing profession. But there is lack of research to examine the influence of the types of nonaudit services provisions and gift hospitality on auditor independence. This paper aims to fill this gap. Design/methodology/approach – This Hong Kong study differs significantly from prior studies and is the first to examine the perceived independence by encompassing both qualitative and quantitative analysis. Binary logistic regression is used to capture data from Big 4 auditors and financial analysts' viewpoints. Findings – Results indicate that auditor independence decreases as the auditors provide accounting services, internal audit or corporate finance services to the firms. Corporate finance services have the greatest negative impact. However, it contributes new knowledge to the literature that the provisions of taxation services to clients are valueadded service and confirms the result in the US study. Receiving gift or hospitality from client has no influence on perceived independence and revokes an early study by Pany and Reckers. There is no expectation gap found between the groups, narrowing the expectation gap theory in the postEnron and revokes the US and the UK studies. Practical implications – The expectation gap theory seems to be narrowed in the postEnron environment. It is hoped that a longitudinal study could be conducted in future. Originality/value – This paper adds new contributions to the auditing literature in the Asia Pacific Region and provides better understanding for devising auditing guidelines in Hong Kong and their international counterparts. © 2010, Emerald Group Publishing Limited
KeywordAuditing Auditors Financial services Hong Kong
URLView the original
Fulltext Access
Citation statistics
Document TypeJournal article
CollectionUniversity of Macau
Corresponding AuthorLaw,Philip
AffiliationDepartment of Accounting,Faculty of Business Administration,University of Macau,,Macao
First Author AffilicationFaculty of Business Administration
Corresponding Author AffilicationFaculty of Business Administration
Recommended Citation
GB/T 7714
Law,Philip. The influence of the types of NAS provisions and gifts hospitality on auditor independence[J]. International Journal of Accounting & Information Management,2010,18(2):105-117.
APA Law,Philip.(2010).The influence of the types of NAS provisions and gifts hospitality on auditor independence.International Journal of Accounting & Information Management,18(2),105-117.
MLA Law,Philip."The influence of the types of NAS provisions and gifts hospitality on auditor independence".International Journal of Accounting & Information Management 18.2(2010):105-117.
Files in This Item:
There are no files associated with this item.
Related Services
Recommend this item
Usage statistics
Export to Endnote
Google Scholar
Similar articles in Google Scholar
[Law,Philip]'s Articles
Baidu academic
Similar articles in Baidu academic
[Law,Philip]'s Articles
Bing Scholar
Similar articles in Bing Scholar
[Law,Philip]'s Articles
Terms of Use
No data!
Social Bookmark/Share
All comments (0)
No comment.

Items in the repository are protected by copyright, with all rights reserved, unless otherwise indicated.