Research On The Impact Of Audit Quality By The Non-audit Service

With the increasing of the competition in the audit service market, CPAs have tobear more risks than before. Non-audit service is an important service field ofaccounting offices. It is no doubt that non-audit services are valuable, but just aseverything has two sides, it makes CPAs less independent in finance when they face tothe managements. With the outbreak of financial fraud, non-audit services become tothe topics in the society and overall there are two opposing views accounting to relevantliteratures.This article will apply the combination methods of theoretical analysis researchand empirical research to study the influence of non-audit services on audit quality.Firstly, the paper introduces the basic knowledge and use main apply principal-agenttheory, rent-seeking theory to explain the influence. Secondly, the paper uses logisticregression analysis to analyze every group of samples.It turns out that if accounting firms provide both audit services and non-auditservices to their customers at the same time, the quality of their audit services will beadversely affected. This kind of impact is more serious when the accounting firm isLLC. Also the impact is more serious when the accounting firm is a smaller one.