文章基本信息

标题：The effect of management consulting services on investor perceptions of audit quality
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作者：Linda Flaming ; Nancy Uddin
期刊名称：Journal of Behavioral Studies in Business
印刷版ISSN：1941-563X
电子版ISSN：1941-5508
出版年度：2020
卷号：12
出版社：Academic and Business Research Institute
摘要：At Big4 audit firms, audit fees decreased from 57% of total revenue in 2004 to 34% in2018, while management consulting service fees increased from 11% of total revenues in 2004 to39% in 2018. This study experimentally investigates how investors perceive this revenue mixtrend. Although audit firms provide consulting services to non-audit clients, regulators haveexpressed concerns that a consulting-focus firm will allocate less resources and effort to audits.There is concern that investors will lose trust in audit firms that focus on consulting at theexpense of auditing (Harris, 2014). This study directly addresses this concern about investorperceptions.Forty non-professional investor participants perceived auditor competence and auditorindependence to be significantly lower for consulting-focused firms as compared to auditfocusedfirms. Audit quality perceptions and investment likelihood were not affected. Althoughlack of differences could allay regulators’ concerns, auditor knowledge and independenceperception differences indicate the need for further investigation.
关键词：Management consulting; audit fees; audit quality; auditor independence; investor;decision-making; regulatory concerns