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Sarbanes Oxley, Non Audit Services (NAS) and the mandatory rotation of audit firms

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  • Marianne, Ojo

Abstract

Whilst the benefits and potentials of the dual roles assumed by external auditors are emphasized, as well as the need to ensure that safeguards operating to guard against a compromise of objectivity and independence are in place, this paper also highlights the fact that even though such dual roles are appropriate in certain cases – as illustrated by justifications for limitations imposed by the Sarbanes Oxley Act and other relevant and applicable legislation – instances also persist where section 201 of Sarbanes-Oxley, with regard to internal audit outsourcing, may have been over-reactionary and may continue to hinder both companies and their auditors.

Suggested Citation

  • Marianne, Ojo, 2013. "Sarbanes Oxley, Non Audit Services (NAS) and the mandatory rotation of audit firms," MPRA Paper 52073, University Library of Munich, Germany, revised 05 Dec 2013.
    • Handle: RePEc:pra:mprapa:52073
    as

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    File URL: https://mpra.ub.uni-muenchen.de/69291/1/MPRA_paper_52073.pdf
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    References listed on IDEAS

    as
    1. Vivien Beattie & Stella Fearnley & Richard Brandt, 2001. "Behind Closed Doors," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59941-3.
    2. Jenny Stewart & Nava Subramaniam, 2010. "Internal audit independence and objectivity: emerging research opportunities," Managerial Auditing Journal, Emerald Group Publishing, vol. 25(4), pages 328-360, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    independence; objectivity; Sarbanes Oxley Act; FSMA section 166; non audit services;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G3 - Financial Economics - - Corporate Finance and Governance
    • K2 - Law and Economics - - Regulation and Business Law
    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting

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