The relationship between categories of non-audit services and audit fees: evidence from UK companies

Ezzamel, Mahmoud ORCID: https://orcid.org/0000-0002-3673-8440, Gwilliam, D. R. and Holland, Kevin ORCID: https://orcid.org/0000-0002-0414-2503 2002. The relationship between categories of non-audit services and audit fees: evidence from UK companies. International Journal of Auditing 6 (1) , pp. 13-35. 10.1111/j.1099-1123.2002.tb00003.x

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Abstract

Using survey data we examine the relationship between various categories of non-audit services and audit fees. Compared to previous research, we use a more refined classification of non-audit services both for incumbent and non-incumbent auditors, and control for the existence of an internal audit function and basis of disclosure. Our results suggest that the relationship between levels of audit fees and non-audit services varies by category of non-audit service. These results support explanations of the positive association between fees paid for non-audit services and audit fees in terms either of client specific differences, e.g. organisational complexity, or of events giving rise to the purchase of more audit and non-audit services rather than in terms of direct economic linkages between the cost functions for audit and non-audit services. We speculate that the presence of another auditing firm at the client in a consulting capacity may exert competitive pressure on the fee for external audit.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HF Commerce > HF5601 Accounting
Uncontrolled Keywords:	Audit Fees; Non-audit Services
Publisher:	Wiley-Blackwell
ISSN:	1090-6738
Last Modified:	24 Oct 2022 09:52
URI:	https://orca.cardiff.ac.uk/id/eprint/42429

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