Authors: Prem Lal Joshi, Wayne G. Bremser, J. Hemalatha, Jawaher Al-Mudhaki
Addresses: University of Bahrain, P.O. Box 32038, Bahrain. ' Villanova University, Bartley Hall, Villanova, PA, USA. ' Besant Nagar, Chennai, India. ' University of Bahrain, P.O. Box 32038, Bahrain
Abstract: We report on a questionnaire survey of audit firms and listed companies in the Kingdom of Bahrain to investigate the perceptions on the issue of auditors| independence with regard to rendering non-audit services (NAS). Our survey results of auditors and client executives support the proposition that independence is impaired if the auditor also renders non-audit services. However, most respondents from both groups indicated that NAS provided by company auditors affects the auditor independence to a limited extent only, and opine that such services should not be prohibited. Most listed companies obtain NAS from their company auditors, but the NAS fee ratio to audit fees is not high. Auditors and listed companies perceive that independence is not at all compromised or tends to be compromised to a limited extent for 15 types of NAS. The perceptions differed based on the size, non-audit fees and foreign operations for some of the NAS.
Keywords: auditor independence; Bahrain; non-audit services; regulation; rotation.
International Journal of Accounting, Auditing and Performance Evaluation, 2007 Vol.4 No.1, pp.57 - 89
Available online: 26 Feb 2007 *Full-text access for editors Access for subscribers Purchase this article Comment on this article