An assessment of the provisions of regulation (EU) no 537/2014 on non-audit services and audit firm tenure: evidence from Spain

Producción científica: Artículo en revista indizadaArtículorevisión exhaustiva

17 Citas (Scopus)

Resumen

On May 27, 2014, Regulation (EU) No 537/2014 was published in the Official Journal of the European Union. Aiming to enhance audit quality, the new regulation establishes important limitations to the selling of non-audit services by the audit firm to audit clients and a maximum tenure of ten years with the audit firm. However, it should be noted that the extant research has not consistently supported that non-audit services or long tenures impair the quality of audits. This research studies whether these provisions have been empirically associated with reduced audit quality for Spain. Because of its low litigation risk, the potentially negative impact of both non-audit services and tenure on audit quality should be clearly observed in the Spanish audit market. Nevertheless, we do not find significantly lower levels of audit quality associated with either non-audit services or long audit tenures. However, these results are conditional on the validity of using abnormal accruals to measure audit quality.

Idioma originalInglés
Páginas (desde-hasta)251-261
Número de páginas11
PublicaciónInternational Journal of Accounting
Volumen52
N.º3
DOI
EstadoPublicada - sept 2017

Huella

Profundice en los temas de investigación de 'An assessment of the provisions of regulation (EU) no 537/2014 on non-audit services and audit firm tenure: evidence from Spain'. En conjunto forman una huella única.

Citar esto