Journal article
Internal Auditing Outsourcing, Nonaudit Services, and Audit Fees
Auditing, Vol.40(2), pp.23-48
2021
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.
Details
- Title
- Internal Auditing Outsourcing, Nonaudit Services, and Audit Fees
- Authors
- Effiezal Aswadi Abdul Wahab (Author) - Curtin UniversityWillie. E. Gist (Corresponding Author) - Ohio UniversityFerdinand A. Gul (Author) - Deakin UniversityMazlina Mat Zain (Author) - Multimedia University
- Publication details
- Auditing, Vol.40(2), pp.23-48
- Publisher
- American Accounting Association
- DOI
- 10.2308/AJPT-17-044
- ISSN
- 1558-7991
- Organisation Unit
- University of the Sunshine Coast, Queensland; School of Business and Creative Industries
- Language
- English
- Record Identifier
- 99679192702621
- Output Type
- Journal article
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