Tax Haven Use, the Pricing of Audit and Non-Audit Services, Suspicious Matters Reporting Obligations and Whistle Blower Hotline Facilities: Evidence from Australian Financial Corporations

This study examines whether tax haven use by Australian financial corporations is associated with the pricing of audit and non-audit services. It also analyzes whether the existence of financial corporations’ suspicious matters reports (SMRs) and whistle blower hotline facilities moderate the associ...

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Main Authors: Eulaiwi, Baban, Al-Hadi, Al-Hadi Ahmed, Taylor, Grantley, Dutta, Saurav, Duong, Lien, Richardson, Grant
Format: Journal Article
Language:English
Published: Elsevier 2021
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/85145
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author Eulaiwi, Baban
Al-Hadi, Al-Hadi Ahmed
Taylor, Grantley
Dutta, Saurav
Duong, Lien
Richardson, Grant
author_facet Eulaiwi, Baban
Al-Hadi, Al-Hadi Ahmed
Taylor, Grantley
Dutta, Saurav
Duong, Lien
Richardson, Grant
author_sort Eulaiwi, Baban
building Curtin Institutional Repository
collection Online Access
description This study examines whether tax haven use by Australian financial corporations is associated with the pricing of audit and non-audit services. It also analyzes whether the existence of financial corporations’ suspicious matters reports (SMRs) and whistle blower hotline facilities moderate the association between tax haven use and pricing of audit and non-audit services. We find a positive association between tax haven use and the pricing of audit and non-audit services. Our results are economically significant. For example, audit fees for financial corporations with tax haven use is around 23 per cent higher compared to corporations with no tax haven use, while non-audit fees for financial corporations with tax haven use is around 13 per cent higher compared to corporations with no tax haven use. We also find that the existence of SMRs and whistle blower hotline facilities both moderate the positive association between tax haven use and audit pricing. Overall, our results suggest that tax haven use has serious consequences for financial corporations’ pricing of audit and non-audit services, whereas SMRs and whistle blower hotline facilities assist corporations to reduce the risks concerning tax haven use.
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spelling curtin-20.500.11937-851452023-07-20T02:41:55Z Tax Haven Use, the Pricing of Audit and Non-Audit Services, Suspicious Matters Reporting Obligations and Whistle Blower Hotline Facilities: Evidence from Australian Financial Corporations Eulaiwi, Baban Al-Hadi, Al-Hadi Ahmed Taylor, Grantley Dutta, Saurav Duong, Lien Richardson, Grant 1501 - Accounting, Auditing and Accountability This study examines whether tax haven use by Australian financial corporations is associated with the pricing of audit and non-audit services. It also analyzes whether the existence of financial corporations’ suspicious matters reports (SMRs) and whistle blower hotline facilities moderate the association between tax haven use and pricing of audit and non-audit services. We find a positive association between tax haven use and the pricing of audit and non-audit services. Our results are economically significant. For example, audit fees for financial corporations with tax haven use is around 23 per cent higher compared to corporations with no tax haven use, while non-audit fees for financial corporations with tax haven use is around 13 per cent higher compared to corporations with no tax haven use. We also find that the existence of SMRs and whistle blower hotline facilities both moderate the positive association between tax haven use and audit pricing. Overall, our results suggest that tax haven use has serious consequences for financial corporations’ pricing of audit and non-audit services, whereas SMRs and whistle blower hotline facilities assist corporations to reduce the risks concerning tax haven use. 2021 Journal Article http://hdl.handle.net/20.500.11937/85145 10.1016/j.jcae.2021.100262 English http://creativecommons.org/licenses/by-nc-nd/4.0/ Elsevier fulltext
spellingShingle 1501 - Accounting, Auditing and Accountability
Eulaiwi, Baban
Al-Hadi, Al-Hadi Ahmed
Taylor, Grantley
Dutta, Saurav
Duong, Lien
Richardson, Grant
Tax Haven Use, the Pricing of Audit and Non-Audit Services, Suspicious Matters Reporting Obligations and Whistle Blower Hotline Facilities: Evidence from Australian Financial Corporations
title Tax Haven Use, the Pricing of Audit and Non-Audit Services, Suspicious Matters Reporting Obligations and Whistle Blower Hotline Facilities: Evidence from Australian Financial Corporations
title_full Tax Haven Use, the Pricing of Audit and Non-Audit Services, Suspicious Matters Reporting Obligations and Whistle Blower Hotline Facilities: Evidence from Australian Financial Corporations
title_fullStr Tax Haven Use, the Pricing of Audit and Non-Audit Services, Suspicious Matters Reporting Obligations and Whistle Blower Hotline Facilities: Evidence from Australian Financial Corporations
title_full_unstemmed Tax Haven Use, the Pricing of Audit and Non-Audit Services, Suspicious Matters Reporting Obligations and Whistle Blower Hotline Facilities: Evidence from Australian Financial Corporations
title_short Tax Haven Use, the Pricing of Audit and Non-Audit Services, Suspicious Matters Reporting Obligations and Whistle Blower Hotline Facilities: Evidence from Australian Financial Corporations
title_sort tax haven use, the pricing of audit and non-audit services, suspicious matters reporting obligations and whistle blower hotline facilities: evidence from australian financial corporations
topic 1501 - Accounting, Auditing and Accountability
url http://hdl.handle.net/20.500.11937/85145