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Publication
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| Research Title |
Auditor Independence: Insights from Thailand |
| Date of Distribution |
27 November 2023 |
| Conference |
| Title of the Conference |
20th Asian Academic Accounting Association Annual Conference 2023 |
| Organiser |
Asian Academic Accounting Association |
| Conference Place |
Pullman Khon Kaen Raja Orchid Hotel |
| Province/State |
KHON KAEN, THAILAND |
| Conference Date |
26 November 2023 |
| To |
28 November 2023 |
| Proceeding Paper |
| Volume |
2567 |
| Issue |
1 |
| Page |
55-67 |
| Editors/edition/publisher |
Asian Academic Accounting Association |
| Abstract |
In recent years, the public places the concern over the non-audit service (NAS) provided by auditors that may eliminate the auditor's independence and audit performance accordingly. Hence, this research is motivated by such a concern and consequences of the reforming of the Code of Ethics regarding the auditor independence. This study aims to investigate whether the auditor independence proxied by the non-audit service fees affects audit quality. Using financial accounting data of Thai listed companies spanning over 2013-2021, the results indicate that non-audit service fees do not have an effect on audit quality. The findings also indicate that after the revision of the Code of Ethics for Professional Accountants with respect to the auditor independences, the audit quality has not improved statistically. The study further conducted robust tests by using alternative measurements to capture the auditor independence; non-legally set per time of the audit rotation, abnormal audit fees, and the proportion of non-audit service fees to total fees, regress on audit quality. Results from additional tests show that abnormal audit fees do not affect the audit quality; the voluntary ratio reduces audit quality while abnormal audit fees do not affect the audit quality. Interestingly, the proportion of non-audit service fees to total fees improves audit quality significantly. The study contributes to literature and practitioners in multiple ways. First, findings point out that non-audit services may not be a threat to the auditor independence but a knowledge spillover between audit and non-audit increases an audit effectiveness and performance accordingly. That is, the higher proportion of non-audit services fees to total fees, the better audit quality. Second, findings from this research could assist regulators and investors to govern and monitor listed firms that involve a non-legally set period of time of the audit rotation. |
| Author |
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| Peer Review Status |
มีผู้ประเมินอิสระ |
| Level of Conference |
นานาชาติ |
| Type of Proceeding |
Full paper |
| Type of Presentation |
Oral |
| Part of thesis |
true |
| Presentation awarding |
false |
| Attach file |
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| Citation |
0
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Journal Publication
ไทย