Show simple item record

dc.contributor.authorGriffin, Paul Aen_NZ
dc.contributor.authorLont, David Hen_NZ
dc.contributor.authorSun, Yuanen_NZ
dc.date.available2011-04-07T03:22:49Z
dc.date.copyright2008en_NZ
dc.identifierJEL Classification: C30, K22, L80, M40, M41en_NZ
dc.identifier.citationGriffin, P. A., Lont, D. H., & Sun, Y. (2008). Governance regulatory changes, IFRS adoption, and New Zealand audit and non-audit fees: Empirical evidence (Accountancy Working Paper Series No. 9). University of Otago. Retrieved from http://hdl.handle.net/10523/1568en
dc.identifier.urihttp://hdl.handle.net/10523/1568
dc.description.abstractThis study examines the association between overseas and New Zealand governance regulatory reforms in New Zealand public companies’ audit and non-audit fees. We state audit and non-audit fee models, and use temporal and IFRS indicator variables to relate the timing of the fee changes with the incidence of the overseas and local governance reforms. We find that audit fees increased in New Zealand over 2002-2006. Such increases associate reliably with the transition to and adoption of NZ IFRS and not with the overseas governance reforms in the United States and Australia, enacted earlier. Our results also show a decrease in non-audit fees over the same period but we find no IFRS effect for non-audit fees. JEL Classification: C30, K22, L80, M40, M41.en_NZ
dc.format.mimetypeapplication/pdf
dc.publisherUniversity of Otagoen_NZ
dc.relation.ispartofseriesAccountancy Working Paper Seriesen_NZ
dc.relation.replaces1580en_NZ
dc.subjectAudit feesen_NZ
dc.subjectauditor independenceen_NZ
dc.subjectgovernance regulationsen_NZ
dc.subjectInternational Financial Reporting Standardsen_NZ
dc.subjectnon-audit feesen_NZ
dc.subjectNZ IFRSen_NZ
dc.subjectSarbanes-Oxley (SOX).en_NZ
dc.subject.lcshHF Commerceen_NZ
dc.subject.lcshHF5601 Accountingen_NZ
dc.subject.lcshHG Financeen_NZ
dc.subject.lcshHD61 Risk Managementen_NZ
dc.subject.lcshHF5601 Accountingen_NZ
dc.subject.lcshK Law (General)en_NZ
dc.subject.lcshHJ Public Financeen_NZ
dc.titleGovernance regulatory changes, IFRS adoption, and New Zealand audit and non-audit fees: Empirical evidenceen_NZ
dc.typeWorking Paperen_NZ
dc.description.versionUnpublisheden_NZ
otago.bitstream.pages39en_NZ
otago.date.accession2009-12-07 20:10:22en_NZ
otago.schoolAccountancy and Business Lawen_NZ
otago.openaccessOpen
otago.place.publicationP O Box 56 Dunedin, New Zealanden_NZ
dc.identifier.eprints861en_NZ
otago.school.eprintsAccountancy & Business Lawen_NZ
dc.description.referencesAntle, R., P. Griffin, D. Teece, and O. Williamson, 1997, An economic analysis of auditor independence for a multi-client, multi-service public accounting firm. Report prepared for the AICPA by The Law & Economics Consulting Group, Inc. Antle, R., E. Gordon, G. Narayanamoorthy, and L. Zhou, 2006, The joint determination of audit fees, non-audit fees, and abnormal accruals. Review of Quantitative Finance and Accounting 27, 235-266. Auditing Guidance Statement 1012, 2007, Audit implications of the transition to New Zealand Equivalents to International Reporting Standards. New Zealand Institute of Chartered Accountants, issued Dec 2006, amended May 2007. Auditing Standard-206, 2005, The auditor’s responsibility to consider fraud in an audit of a financial report. New Zealand Institute of Chartered Accountants, issued January 2005. Auditing Standard-300, 2005, Planning an audit of financial reports. New Zealand Institute of Chartered Accountants, issued January 2005. Auditing Standard-545, 2004, Auditing fair value: measurements and disclosures. New Zealand Institute of Chartered Accountants, issued July 2004. Australian Stock Exchange Listing Rule-12.7, 2003, On-going Requirements: Audit Committee. Australian Accounting Standards Board, issued January 2003. Baskerville, R., and D. Hay, 2006, The effect of accounting firm mergers on the market for audit services: New Zealand evidence. Abacus 42, 87-104. Bebbington, J., and E. Song, 2003, The Adoption of IFRS in the EU and New Zealand: A Preliminary Report. University of Canterbury. Bradbury, M., and T. van Zijl, 2005, Shifting to International Financial Reporting Standards. Auckland Business Review (Autumn), 77-83. Carson, E., and N. Fargher, 2007, Note on audit fee premiums to client size and industry specialization. Accounting and Finance 47, 423-446. Carson, E., R. Simnett, B. Soo, and A. Wright, 2002, The pricing of client risk in a competitive audit market, Working paper (University of New South Wales, Sydney, NSW). Ciesielski, J., and T. Weirich, 2006, Ups and downs of audit fees since the Sarbanes-Oxley Act. The CPA Journal 76, 28-35. CLERP 9, 2004, Corporate Law Economic Reform Program (Audit Reform and Corporate Disclosure) Act,issued 30 June 2004. Code of Ethics, 2003, Independence in Assurance Engagements, Institute of Chartered Accountants of New Zealand, issued August 2003. DeAngelo, L., 1981, Auditor size and audit quality. Journal of Accounting and Economics 3, 183-199. Diplock, J., 2005, Importance of Audit Quality and Auditing Standards: New Zealand and International 27 Perspectives. Available: www.seccom.govt.nz/speeches/2005/jds111105.shtml. Financial Reporting Act 1993. Financial Reporting Amendment Act 2006. Firth, M., 1997, The provision of nonaudit services by accounting firms to their clients. Contemporary Accounting Research 14, 1-21. Fisher, C., 2007, The future of audit in New Zealand. Chartered Accountants Journal 86 (1), 4-5. Frankel, R., M. Johnson, and K. Nelson, 2002, The relation between auditors’ fees for non-audit services and earnings management. The Accounting Review 77, 71–105. Griffin, P., and D. Lont, 2007, An analysis of audit fees following the passage of Sarbanes-Oxley. Asia-Pacific Journal of Accounting & Economics 14, 161-192. Hay, D., and R. Knechel, 2006, The effects of advertising and solicitation on audit fees, Working paper (University of Auckland, Auckland) Hay, D., W. Knechel, and N. Wong, 2006a, Audit fees: A meta-analysis of the effect of supply and demand attributes. Contemporary Accounting Research 23, 141-191. Hay, D., R. Knechel, and V. Li, 2006b, Non-audit services and auditor independence: New Zealand evidence. Journal of Business Finance & Accounting 33, 715-734. Houghton, K., and C. Ikin, 2001, Auditor provided non-audit services: Modeling fees and willingness to buy, Working Paper (University of Texas, Texas). Hunt, W., 2005, Sarbanes-Oxley and New Zealand. Chartered Accountants Journal 84 (11), 1. Institute of Chartered Accountants in England and Wales, 2007, EU implementation of IFRS and the fair value directive: A report for the European Commission. International Auditing Standard-240, 2004, The auditor’s responsibilities relating to fraud in an audit of financial statements. International Auditing and Assurance Standards Board. International Auditing Standard-300, 2004, Planning an Audit of Financial Statements. International Auditing and Assurance Standards Board. International Auditing Standard-545, 2002, Auditing fair values measurements and disclosures. International Auditing and Assurance Standards Board. Joe, J., and S. Vandervelde, 2007, Do auditor-provided nonaudit services improve audit effectiveness? Contemporary Accounting Research 24, 467-497. Kinney, W., Z. Palmrose, and S. Scholz, 2004, Auditor independence, non-audit services, and restatements: Was the U.S. government right? Journal of Accounting Research 42, 561–588. Knechel, R., and J. Payne, 2001, Additional evidence on audit report lags. Auditing: A Journal of Practice & Theory 20, 137-146. Maher, M., P. Tiessen, R. Colson, and A. Broman, 1992, Competition and audit fees. The Accounting Review 28 67, 199-211. Markelevich, A., C. Barragato, and R. Hoitash, 2005, The nature and disclosure of fee paid to auditors: An analysis before and after the Sarbanes-Oxley Act. The CPA Journal 75, 6-10. Marshall, R., 2002, Enron, WorldCom and New Zealand Accountancy. Chartered Accountants Journal 81 (7), 4-5. Menon, K., and D. Williams, 2001, Long-Term Trends in Audit Fees. Auditing: A Journal of Practice & Theory 20, 116-136. Mishra, S., K. Raghunandan, and D. Rama, 2005, Do investors’ perceptions vary with types of no audit fee? Evidence from auditor ratification voting. Auditing: A Journal of Practice & Theory 24, 9-25. Muriwai, G.., 2005, We’re doing well – but we can do better. Chartered Accountants Journal 84 (11), 23-28. Ministry of Economic Development, 2004, Part I: The Financial Reporting Structure: Discussion Document, issued March 2004. Ministry of Economic Development, 2004, Part II: The Financial Reporting Structure: Discussion Document, issued November 2004. Neter, J., W. Wasserman, and M. Kutner, 1990, Applied Linear Statistical Models (3rd ed.), Homewood, Ill., Richard D. Irwin. New Zealand Securities Commission, 2004, Corporate Governance in New Zealand Principles and Guidelines. Available: www.seccom.govt.nz/publications/documents/governance-principles/index.shtml. New Zealand Securities Commission, 2007, Independent audit regulation and oversight in New Zealand. Available: www.seccom.govt.nz/publications/documents/letter-audit2.shtml. New Zealand Stock Exchange Listing Rules, 2004, Available: http://www.nzx.com/regulations/rules/nzsx_and_nzdx_listing_rules. Pickens, D., 2005, Corporate reporting: three years on.Chartered Accountants Journal 84 (4), 38-39. Pong, C., 2004, A descriptive analysis of audit price changes in the UK 1991-95. European Accounting Review 13, 161-178. Pong, C., and G. Whittington, 1994, The determinants of audit fees: Some empirical models. Journal of Business Finance and Accounting 21, 1071-1095. Salman, F., and E. Carson, 2008, The impact of the Sarbanes-Oxley Act on Australian listed firms, Working Paper (University of New South Wales, Sydney, NSW). Sarbanes-Oxley Act of 2002, HR 3763, 107th Congress, Passage July 25, 2002. Schadewitz, H., and M. Vieru, 2008, Impact of IFRS transition complexity on audit and non-audit fees: Evidence from small and median-sized listed companies in Finland, Working Paper (Turku School of Economics, Turku) Simon, D., and J. Francis, 1988, The effects of auditor change on audit fees: Test of price cutting and price recovery. The Accounting Review 63, 255-269. 29 Simon, D., and M. Taylor, 1997, The Market for Audit Services in Pakistan. Advances in International Accounting 10, 87-101. Simunic, D., 1980, The pricing of audit services: Theory and evidence. Journal of Accounting Research 18, 161-190. Stuart, A., 2002, Audit Fees on the Rise. CFO Magazine, 1 October. Turpen, R., 1990, Differential pricing on auditors’ initial engagements: Further evidence. Auditing: A Journal of Practice & Theory 9, 60-76. Whisenant, S., S. Sankaraguruswamy, and K. Raghunandan, 2003, Evidence on the joint determination of audit and non-audit fees. Journal of Accounting Research 41, 721-744. Wilcox, K., 2007, Dealing with Sarbox. Wall Street Journal, 1 June, Eastern edition.en_NZ
otago.relation.number9
 Find in your library

Files in this item

Thumbnail

This item appears in the following Collection(s)

Show simple item record

VersionItemEditorDateSummary

*Selected version