e-ISSN 2231-8542
ISSN 1511-3701
Mazrah Malek and Ayoib Che Ahmad
Pertanika Journal of Tropical Agricultural Science, Volume 21, Issue S, October 2013
Keywords: Attachment theory, auditor choice, auditor-auditee relationship, director-auditor link, interlocking directorships, non-audit services fee
Published on:
Despite concerns on joint-provision of audit and non-audit services, not many studies have been conducted on examining the factors influencing companies to purchase non-audit services from their auditor. The attachment theory postulates that non-audit services purchasing decisions are influenced by the director-auditor link. Using 759 sample companies listed on Bursa Malaysia in 2007, the OLS regression results show a significant positive relationship between director-auditor link and non-audit services fee. The finding adds to the limited literature on the factors influencing companies to purchase non-audit services from their auditor and suggests the need for active involvement of shareholders in the auditor selection process.
ISSN 1511-3701
e-ISSN 2231-8542