The Study On The Relationship Between Non-audit Services And Audit Independence

The study on the impact between non-audit services(NAS)and auditor independence can be traced back to the seventies of the 20th century.Today,we still haven't draw an unified view in this field.One kind of standpoint is that non-audit services can expand business area,generate more profit,improve audit efficiency,attract and retain pesonnel,meet customers'demand anddiversify audit risk.Another standpoint view non-audit services will strengthen the economic links between customer and incumbent auditor,which will damage auditor independence.The debate focuses on whether the auditor independence is affected by providing non-audit services.In December 2001,the bankruptcy case of Enron which was ranked as the seventh of "Fortune" 500 companies in America shocked the world,and the former "Big Five" accounting firm, Arthur Andersen,had to have also withdrawn from the audit services market because of Enron's scandal.As Enron's external auditor,Arthur Andersen accounting firm made the errors and face the conflict of interests outstandingly,it's accused of auditing failure because of losing its dependence. Faced with the collapse of the Enron and Arthur Andersen's out,suffering the situation that the non audit services separated from "big four" and the world's "non-cut" wave,as the just beginning business of the non auditing service of accounting firms in our country? What to do and how to do? Based on the reality of our country,additionally learning from foreign research results and practical experience,it's quite necessary and especially important to discuss the relationships of non-audit services providing and audit the independence of audit from the theory level.my article has five parts:The first section,Putting forward the problems,Subjects are presented to the topic background and meaning respectively,and based on the ideas of auditing,then draw the framework of this article.The second section,Literature review,During this part,make the list of studies at home and abroad according to the time for study,which makes base for the further discussion below.Study topics including:foreign point of view,the domestic point of view,the point view of that that non-audit services will affect the independence of audit and the viewpoint of that non-audit service will not affect the independence of the audit.The third section,The core of this article,From the theoretical and empirical aspects,we analyze the impact of non-auditing services on the dependence of auditing for the same CPA firm. From the aspect of theory,we carry out the analysis the positive impact of the non auditing service on the auditor's dependence,and the negative impact of the non auditing service on the auditor's dependence;empirically,first we introduce Empirical Study of non-audit services to audit independence abroad,and then carry out an analysis for the data form carry out an analysis from 2005 and 2006In the four setion,first we analyze the current problems existing for the non auditing service business in our CAP industry,and then analyze he necessity and feasibility of non auditing service business in our country,and finally we put forward the how to improve the business of non auditing service in our countryThe fifth section,the conclusionsFor the reality of non auditing service business in the CPA industry of our country,we think it's not so significant of the impact of non auditing service on the deference of auditing and we call for that the non auditing service business should be be promoted based on the legal norms.Because there is still relatively empirical research on non auditing service business in our country,and there are limitation and weekness of this article in several aspects,it is proposed that future research should be from different perspectives,to carry out multi-directional.