Premium
Governance regulatory changes, International Financial Reporting Standards adoption, and New Zealand audit and non‐audit fees: empirical evidence
Author(s) -
Griffin Paul A.,
Lont David H.,
Sun Yuan
Publication year - 2009
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/j.1467-629x.2009.00310.x
Subject(s) - accounting , audit , business , corporate governance , international financial reporting standards , audit evidence , joint audit , audit committee , chief audit executive , empirical evidence , internal audit , finance , philosophy , epistemology
This study examines the association between overseas and New Zealand governance regulatory reforms and New Zealand companies’ audit and non‐audit fees. Our models use temporal and International Financial Reporting Standards (IFRS) indicator variables to relate the timing of the fee changes to the incidence of the overseas and local reforms. We find that audit fees increased in New Zealand over 2002–2006. Such increases associate reliably with the transition to and adoption of NZ IFRS and not with earlier overseas governance reforms. Our study also documents a decrease in non‐audit fees over the same period, but we find no IFRS effect for non‐audit fees.