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

Within a fairly long time, the audit services has always been regarded as the core business of CPA. However, with the development of market economy, CPA not only provides audit services to clients, but also provides Management Consulting Service and other non-audit services. Since 1970s, the fierce competitive market for non-audit services provided a good opportunity for development, and non-audit services gradually became the most potential value-added services. By 1990s, non-audit services have made more profit than audit services, and grew up to the main profit-earning service items of CPA firms. The rapid development of non-audit services causes hot debate. Some people think that Non-audit services will affect the audit independence, but some people show that Non-audit services will not affect the audit independence. Today, still have not reached a consensus.In this context, After presenting the definition of NAS, the thesis reviews the evolving process of NAS and analyzes the reasons of its prosperity and setback. Then, the thesis historically reviews some of the relevant literature from home and abroad. In light of China's Empirical reality from the perspective of non-audit services in China's impact on the independence of the audit was verified.In this paper, We first chose the disclosed management consulting services in the annual reports of listed companies in 2002-2006 year as the study samples, use the result of discretionary accrual from modified Jones model, then used the regression analysis of 235 samples which was selected conduct the study. To avoid the error of the study, but also to further the manipulation of plus or minus accrued profits into two sub-samples from the increase, reduction of the surplus management point of non-audit services to audit independence of the impact of the certification. In the control of the other relevant variables, the results show that, in terms of the total samples, or samples of perspective, the cost of the non-profit management audit are not significantly correlated. That the provision of non-audit services in China did not reduce the independence of the audit.