Critically discuss if non-audit service fees has an impact of auditor independence or audit quality. Suggest recommendations of how these issues may be overcome.

There has been significant amount of research done on the relationship between non-audit service fees received by auditors and auditors’ independence. Some found that the amount of non-audit fees received by auditors influences audit quality, while others find that non-audit fees actually improve audit quality.

Required:

Critically discuss if non-audit service fees has an impact of auditor independence or audit quality. Suggest recommendations of how these issues may be overcome.

Tip: Discussion should demonstrate you have done sufficient reading/ research in this area. Ensure you cite relevant literature such as journal articles to gain maximum marks. Keep your discussion clear and concise as words are limited. Minimum 5 references required.

(2,500 words)

You may use the following journals and any other relevant journals for your review:

1. Non-audit service fees, auditor characteristics and earnings restatements

Authors: Deborah Bloomfield and Joshua Shackman Touro University International, Cypress, California, USA

Journal: Managerial Auditing Journal Vol. 23 No. 2, 2008 pp. 125-141 Emerald Group Publishing Limited

2. Auditor fees and audit quality

Authors: Rani Hoitash Department of Accountancy, Bentley College, Waltham, Massachusetts, USA, and Ariel Markelevich and Charles A. Barragato Long Island University, Brookville, New York, U

Journal: Managerial Auditing Journal Vol. 22 No. 8, 2007 pp. 761-786 q Emerald Group Publishing Limited

3. Non-audit fees, disclosure and audit quality

Authors: Clive S. Lennox Bristol University, England,

Journal: The European Accounting Review 1999, 8:2, 239–252, EBSCO

4. Auditor Independence and Audit Quality: A Literature Review

Authors: Nopmanee Tepalagul1 and Ling Lin2

Journal of Accounting, Auditing & Finance 2015, Vol. 30(1) 101–121 The Author(s) 2014 Reprints and permissions: sagepub.com/journalsPermissions.nav DOI: 10.1177/0148558X14544505 jaf.sagepub.com