Title: Non-audit services and perceived auditor's independence: empirical evidence from an emerging market

Authors: Ibrahim El-Sayed Ebaid

Addresses: Faculty of Commerce, Department of Accounting, Tanta University, 70 said St. Tanta, Egypt

Abstract: This study examines the impact of joint provision of audit and non-audit services on investors| perceptions of auditor independence in Egypt as one of emerging markets. The findings of the study reveal that investors| perceptions of auditor independence, reliability of financial statements and investment decision are lower when auditor provides both audit and non-audit services compared to the situation in which auditor provides audit service only. The findings also reveal that investors| perceptions of auditor independence, reliability of financial statements and investment decision are lower when non-audit services are provided by the same staff performing financial statements audit.

Keywords: auditing; auditor independence; non-audit services; corporate governance; Egypt; emeging markets; perceived independence; investor perceptions; reliability; financial statements; investment decisions.

DOI: 10.1504/IJBGE.2011.039967

International Journal of Business Governance and Ethics, 2011 Vol.6 No.2, pp.162 - 182

Published online: 08 May 2011 *

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