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Changes in NHS Trust Audit and Non-Audit Fees

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  • Mark A. Clatworthy
  • Howard J. Mellett
  • Michael J. Peel

Abstract

We examine how NHS trust audit and non-audit (consultancy) fees changed between 1997 and 2004, providing longitudinal evidence during a period of increased public expenditure and rapid restructuring. We find that audit fees rose dramatically over the period, though non-audit fees fell substantially. NHS trusts pay less to their external auditors than their private sector counterparts, probably in consequence of the trusts being more heavily regulated, with the Audit Commission retaining an influential regulatory role and also being the dominant auditor.

Suggested Citation

  • Mark A. Clatworthy & Howard J. Mellett & Michael J. Peel, 2008. "Changes in NHS Trust Audit and Non-Audit Fees," Public Money & Management, Taylor & Francis Journals, vol. 28(4), pages 199-205, August.
    • Handle: RePEc:taf:pubmmg:v:28:y:2008:i:4:p:199-205
    DOI: 10.1111/j.1467-9302.2008.00645.x
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    References listed on IDEAS

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    1. Mark A. Clatworthy & Howard J. Mellett & Michael J. Peel, 2002. "The Market for External Audit Services in the Public Sector: An Empirical Analysis of NHS Trusts," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 29(9‐10), pages 1399-1439.
    2. Mark Clatworthy & Howard Mellett & Michael Peel, 2000. "Developments: External Audit Fee Levels in NHS Trusts," Public Money & Management, Taylor & Francis Journals, vol. 20(1), pages 63-68, January.
    3. Antle, R, 1984. "Auditor Independence," Journal of Accounting Research, Wiley Blackwell, vol. 22(1), pages 1-20.
    4. Ron Hodges & Howard Mellett, 2004. "Reporting PFI in Annual Accounts: A User's Perspective," Public Money & Management, Taylor & Francis Journals, vol. 24(3), pages 153-158, June.
    5. Basioudis, Ilias G. & Ellwood, Sheila, 2005. "External audit in the National Health Service in England and Wales: A study of an oversight body's control of auditor remuneration," Journal of Accounting and Public Policy, Elsevier, vol. 24(3), pages 207-241.
    6. Michael J. Peel & Mark A. Clatworthy, 2001. "The Relationship Between Governance Structure and Audit Fees Pre‐Cadbury: some empirical findings," Corporate Governance: An International Review, Wiley Blackwell, vol. 9(4), pages 286-297, October.
    7. Mark A. Clatworthy & Howard J. Mellett & Michael J. Peel, 2002. "The Market for External Audit Services in the Public Sector: An Empirical Analysis of NHS Trusts," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 29(9‐10), pages 1399-1439.
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