The Supply of Non-Audit Services by Auditors

  • Benito Arruñada
Chapter

Abstract

Since their appearance in the XIX century, audit firms have provided a wide variety of services to the majority of their clients. In most countries, many firms currently provide a broad series of non-audit services. On average, these account for around 50 percent of their total fees and have being increasing for many years, although there are substantial differences between firms and countries (Table 4.1).1 This Chapter explains how this pattern of joint provision of audit and non-audit services is based on the greater efficiency deriving from economies of scope, or joint production, of both a productive and contractual origin. It is claimed that they are considerably greater than any diseconomies or negative effects, the latter relating in particular to an appearance of diminished independence in the mind of users of audited financial statements and the public generally.

Keywords

Knowledge Spillover Audit Firm Audit Quality Internal Auditor Auditor Independence 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer Science+Business Media New York 1999

Authors and Affiliations

  • Benito Arruñada
    • 1
  1. 1.Pompeu Fabra UniversityBarcelonaSpain

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