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Determinants of Non-Audit Services in Malaysia: A Theoretical Model

Author

Listed:
  • Siti Subaryani Binti Zainol

    (Universiti Tunku Abdul Rahman)

  • M. Krishna Moorthy

    (Universiti Tunku Abdul Rahman)

  • Tengku Rahimah Binti Tengku Arifin

    (Universiti Tunku Abdul Rahman)

Abstract

This study discusses on the factors that influence the purchase of non-audit services by the companies in Malaysia. It investigates the effects of chief executive officer duality, board independence and audit committee independence on purchase of non-audit services. The proposed model indicates that the chief executive officer duality, board independence and audit community independence influence the non-audit services. However, company size, leverage Return on assets and audit fees act as control variables on non-audit services. This study contributes to the literature by demonstrating the significant factors that will give effect to the purchase of non-audit services. The findings are also relevant to the policy makers and practitioners about the exposure factors that affect non-audit services.

Suggested Citation

  • Siti Subaryani Binti Zainol & M. Krishna Moorthy & Tengku Rahimah Binti Tengku Arifin, 2012. "Determinants of Non-Audit Services in Malaysia: A Theoretical Model," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 2(3), pages 97-111, July.
    • Handle: RePEc:hur:ijaraf:v:2:y:2012:i:3:p:97-111
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    References listed on IDEAS

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    More about this item

    Keywords

    Non-audit services; chief executive officer duality; board independence; audit committee independence; Malaysia;
    All these keywords.

    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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