Abstract
This paper studies the relationship between audit and non-audit service fees paid to the statutory auditor by UK life insurance firms, utilising an extensive panel-data sample set for the period 1999–2009. Consistent with a knowledge spillover (impairment of independence) hypothesis, we predict and find that audit fees are positively (negatively) associated with actuarial (tax service) fees. Additionally, our results indicate that regulatory changes enforced after 2004 deterred UK life insurance firms from purchasing non-audit services that are perceived to impair auditor independence. Finally, we find evidence
concerning the inter-temporal determination of audit fees.
concerning the inter-temporal determination of audit fees.
| Original language | English |
|---|---|
| Journal | Accounting and Business Research |
| Volume | 46 |
| Issue number | 3 |
| Pages (from-to) | 278-302 |
| Number of pages | 15 |
| ISSN | 0001-4788 |
| DOIs | |
| Publication status | Published - 2016 |
| Externally published | Yes |
Keywords
- life insurance
- audit fees
- actuarial fees
- tax service fees
- knowledge spillover
- auditor independence
- panel-data estimation methods