An Empirical Research On The Influence Of Non-audit Service On Audit-independence

Audit independence is the soul of Certified Public Accountants (CPA) and it is also the prerequisite for the existence and development of the CPA industry. With the progress of CPA industry service for market, the revenue from non-audit service is more and more important in the operation of the accounting firm, and the impact of non-audit service on audit independence has also become the core content of audit theoretical and empirical study. The impact of that the listed company purchases audit and non-audit service simultaneously on the audit independence is mainly studied in this paper.Firstly, according to the impact of non-audit service on audit independence based on time sequence, the literature on two different views is reviewed separately. Secondly, based on the introduction and review of the theoretic contrivers among principal-agent theory, knowledge spillover effects and the economic rent-seeking theory, the relationship among above mentioned theories and the effect of non-audit services on audit independence are discussed.At last, the impact of non-audit services on the substantial audit examined by empirical study method:We chose the disclosed management consulting services in the annual reports of listed companies in2007-2010year as the study samples, use the result of discretionary accrual from modified Jones model, then used the regression analysis of102samples 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. On the basis of theoretical analysis and empirical study, some policy advices is brought forword about non-audit services:our country should develop non-audit services with great exertion, but must regulate it from the level of listed companies, supervisor and CPA’ industry.