The Impact Of Audit Term And Non - Audit Cost On Audit Independence

Non-audit services damage auditor independence issue has caused regulatoryagencies, researchers, practitioners and others financial extensive attention.In order tobetter maintain the audit environment, to avoid the occurrence of the auditmisstatements avoid interfering statements of the user’s professional judgment casestudy on the impact of non-audit services to audit independence is necessary. Atpresent, part of the research report for the auditor’s independence and to pay the CPAwhether there is a link between non-audit fees were studied. In the current article onthe independence of the audit made the following contributions: the relationshipbetween non-audit fees and audit independence on the audit office to provideevidence. Only when the audit is short-term rather than long-term audit, regulatorybodies and the financial media have expressed concern about the role of non-auditfeesfor audit independence is reasonable.This paper studies investigate whether auditor independence and non-audit feesand audit related term.Samples screened713Chinese listed companies from2011data based on2012results show that the short-term for the company for a term notexceeding three years,accounting firms,handling accruals as a measure of auditorindependence, non-audit fees and positive handling accruals is a positive correlationbetween us.In addition, the analysis shows that for the short term, the auditor ratherthan large customers and small customers, handling of non-audit fees and accrualswas a significant positive correlation. these results indicate that among the non-auditfees and auditor independence relations depend on the auditor tenure, when the termof the short-term negative impact of the audit and the audited when the small-scaleunits, high non-audit fees generated on auditor independence time. Audit does notresult in a longer term to reduce the quality of auditing and financial reporting, andidentify and recommend high when audit fees, the auditor voluntary rotation system,resulting in a shorter audit tenure and poor audit quality. The results show that thesize of the audited entity between non-audit fees,audit tenure and auditorindependence played a role is.