Perceived Auditor Independence and Audit Litigation: The Role of Nonaudit Services Fees
研究了审计诉讼中各方是否认为非审计服务费用会损害审计师独立性，发现非审计服务费用越高，财务重述引发审计诉讼的可能性越大，且更可能导致审计师和解及更高赔偿。
ABSTRACT This study investigates whether audit litigants act as if they believe jurors will associate auditor-provided nonaudit services (NAS) with impaired auditor independence, and thus substandard auditor performance. Using GAAP-based financial statement restatements disclosed from 2001–2007 as an indicator for audit failure, I find that the amount of NAS fees and the ratio of NAS fees to total fees is positively associated with the likelihood that a restatement results in audit litigation. I also find that when plaintiff attorneys argue that auditor independence was impaired due to dependence on client fees and, in particular, NAS fees, restatement-related audit litigation is more likely to result in an auditor settlement and a larger amount of settlement. These results suggest that audit litigants act as if they believe NAS fees will strengthen the case against the auditor, and thus affect the court resolution if the lawsuit is taken to verdict. Data Availability: All data are publicly available from sources identified in the study.