Empirical Research On The Influence Of Non-audit Service On Audit Quality

The relationship between non-audit services and audit quality is a long-standing focus for public. With the outbreak of financial fraud at home and abroad from 2001, non-audit services were faced with questions in the society. Compared with well-developed non-audit services abroad, the development of non-audit services in china still in preliminary stage, because of the disclosure mechanism has not been perfect, it is hard to collect data on non-audit services. That is why the main research method in this area is normative research not empirical research. So this article will apply the combination methods of normative research and empirical research to study the influence of non-audit services on audit quality and their relationship in china, and try to make contribution to the audit literature.In normative research aspect, this article main apply principal-agent theory, knowledge spillovers theory and rent-seeking theory to explain the influence of non-audit services on audit quality and their relationship.In empirical research aspect, this paper executes empirical tests based on the data of A-share listed companies that ever disclosed audit and non-audit fees from 2005 to 2009. From the angle of audit opinion, with the type of audit opinion as the substitute variable of audit quality, and non-audit fees and proportion of non-audit fees to total fees as the substitute variable of non-audit services, this paper studies this relationship. Using logistic regression analysis to analyze the overall sample and three group samples, meanwhile, in order to ensure rigorous and reliable conclusions, with whether to purchase non-audit services and proportion of non-audit fees to total income of accounting firm as the substitute variable of non-audit services, this paper also execute robust analysis. The research results show that the influence of non-audit services on audit quality is not significant, the relationship is also not significant, non-audit services will not harm the audit quality; But found a trend, when providing more non-audit services or to a certain proportion, their relationship may be more close, the influence of non-audit services on audit quality may be more obvious.