Audit Services And Non-audit Services Knowledge Overflow Effect Research

Knowledge Reciprocal Spillovers, as a special perspective to research the Non-audit services'influence on audit services was first developed by Simunic in 1984. In china, audit services only have 20 years history, the Non-audit services provided by the accounting firm is in very elementary stage. Using Knowledge Reciprocal Spillovers to research the relationship between Non-audit services and audit services is very interesting and necessary, it will help us to enhance the realization of audit services and regulate the audit services and Non-audit services. This paper wants to answer these problems:First,do Knowledge Reciprocal Spillovers exist? Does the company which receives the Non-audit services have higher audit fees than the company does not?Second, under the joint determination of audit services and Non-audit services, does the Knowledge Reciprocal Spillovers exist?Then the author uses a smaller example to analyze:1. Lowballing strategy and Non-audit services: the test of Knowledge Reciprocal Spillover's existence.2. Does the scale of accounting firm influence the order of Non-audit services: compare the Knowledge Reciprocal Spillover in"big eight"and"the non-big eight".The paper organized as follows:In the first section, the paper defines the audit services, Non-audit services, Knowledge Reciprocal Spillover. Then the...