Citation
Abdul Wahab, Effiezal Aswadi and Gist, Willie. E. and Gul, Ferdinand A. and Mat Zain, Mazlina (2021) Internal Auditing Outsourcing, Nonaudit Services, and Audit Fees. AUDITING: A Journal of Practice & Theory, 40 (2). pp. 23-48. ISSN 0278-0380, 1558-7991 Full text not available from this repository.
Official URL: https://doi.org/10.2308/AJPT-17-044
Abstract
This study examines the relationship between outsourced internal audits, nonaudit services, and audit fees. We use Malaysian data to show that client firms that outsource their internal auditing function (IAF) are associated with lower external audit fees than those with in-house IAF. Moreover, this negative relationship is significantly stronger for firms that purchase greater amounts of nonaudit services (NAS) from the auditor. The results suggest that an auditor who provides NAS to a client and thus earns additional overall revenue is willing to accept lower audit fees provided a high audit quality can be achieved through reliance on outsourced IAF.
Item Type: | Article |
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Uncontrolled Keywords: | Management audit |
Subjects: | H Social Sciences > HD Industries. Land use. Labor > HD28-70 Management. Industrial Management > HD58.7-58.95 Organizational behavior, change and effectiveness. Corporate culture |
Divisions: | Faculty of Management (FOM) |
Depositing User: | Ms Nurul Iqtiani Ahmad |
Date Deposited: | 30 Aug 2021 11:21 |
Last Modified: | 30 Aug 2021 11:21 |
URII: | http://shdl.mmu.edu.my/id/eprint/9480 |
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