Director-auditor link and audit quality: the simultaneous effect of auditor-director attachment on audit fees, non-audit services and audit opinion

Director-Auditor Link and Audit Quality aims to examine the effects of director-auditor link on audit services fee, non-audit services fee and audit opinion. Based on the attachment theory, it is argued that director-auditor link created by interlocking directorates enhances the mutual dependence an...

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Bibliographic Details
Main Author: Malik@Malek, Mazrah
Format: Book
Language:English
English
Published: LAP Lambert Academic Publishing 2012
Online Access:http://psasir.upm.edu.my/id/eprint/32891/
http://psasir.upm.edu.my/id/eprint/32891/1/director%20auditor.pdf
http://psasir.upm.edu.my/id/eprint/32891/2/synopsis-director.pdf
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author Malik@Malek, Mazrah
author_facet Malik@Malek, Mazrah
author_sort Malik@Malek, Mazrah
building UPM Institutional Repository
collection Online Access
description Director-Auditor Link and Audit Quality aims to examine the effects of director-auditor link on audit services fee, non-audit services fee and audit opinion. Based on the attachment theory, it is argued that director-auditor link created by interlocking directorates enhances the mutual dependence and trust between the directors and their auditor and this mutuality is expected to influence audit services fee, non-audit services purchased from auditor and audit opinion. Analyses are conducted using data of 759 listed companies on the Bursa Malaysia in 2007 and a two-stage regression method is employed to accommodate the simultaneous equation model. The results show that director-auditor link has a significant negative relationship with audit services fee and significant positive relationships with non-audit services fee purchased from auditor and the issuance of unqualified audit opinion. Thus, the results provide initial evidence on the importance of reviewing the director-auditor link practices in the business environment.
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language English
English
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publishDate 2012
publisher LAP Lambert Academic Publishing
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spelling upm-328912015-08-21T07:24:40Z http://psasir.upm.edu.my/id/eprint/32891/ Director-auditor link and audit quality: the simultaneous effect of auditor-director attachment on audit fees, non-audit services and audit opinion Malik@Malek, Mazrah Director-Auditor Link and Audit Quality aims to examine the effects of director-auditor link on audit services fee, non-audit services fee and audit opinion. Based on the attachment theory, it is argued that director-auditor link created by interlocking directorates enhances the mutual dependence and trust between the directors and their auditor and this mutuality is expected to influence audit services fee, non-audit services purchased from auditor and audit opinion. Analyses are conducted using data of 759 listed companies on the Bursa Malaysia in 2007 and a two-stage regression method is employed to accommodate the simultaneous equation model. The results show that director-auditor link has a significant negative relationship with audit services fee and significant positive relationships with non-audit services fee purchased from auditor and the issuance of unqualified audit opinion. Thus, the results provide initial evidence on the importance of reviewing the director-auditor link practices in the business environment. LAP Lambert Academic Publishing 2012 Book PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/32891/1/director%20auditor.pdf application/pdf en http://psasir.upm.edu.my/id/eprint/32891/2/synopsis-director.pdf Malik@Malek, Mazrah (2012) Director-auditor link and audit quality: the simultaneous effect of auditor-director attachment on audit fees, non-audit services and audit opinion. LAP Lambert Academic Publishing. ISBN 3848487144/9783848487141
spellingShingle Malik@Malek, Mazrah
Director-auditor link and audit quality: the simultaneous effect of auditor-director attachment on audit fees, non-audit services and audit opinion
title Director-auditor link and audit quality: the simultaneous effect of auditor-director attachment on audit fees, non-audit services and audit opinion
title_full Director-auditor link and audit quality: the simultaneous effect of auditor-director attachment on audit fees, non-audit services and audit opinion
title_fullStr Director-auditor link and audit quality: the simultaneous effect of auditor-director attachment on audit fees, non-audit services and audit opinion
title_full_unstemmed Director-auditor link and audit quality: the simultaneous effect of auditor-director attachment on audit fees, non-audit services and audit opinion
title_short Director-auditor link and audit quality: the simultaneous effect of auditor-director attachment on audit fees, non-audit services and audit opinion
title_sort director-auditor link and audit quality: the simultaneous effect of auditor-director attachment on audit fees, non-audit services and audit opinion
url http://psasir.upm.edu.my/id/eprint/32891/
http://psasir.upm.edu.my/id/eprint/32891/1/director%20auditor.pdf
http://psasir.upm.edu.my/id/eprint/32891/2/synopsis-director.pdf