Non-audit fees, institutional monitoring, and audit quality

• Main Authors: Ding, David K., Charoenwong, Charlie, Lim, Chee Yeow
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2013
• Subjects: DRNTU::Business::Accounting
• Online Access: https://hdl.handle.net/10356/97980; http://hdl.handle.net/10220/12168
• Institution: Nanyang Technological University

We posit that the effect of non-audit fees on audit quality is conditional on the extent of institutional monitoring. We suggest that institutional investors have incentives and the ability to monitor financial reporting quality. Because of the reputation concerns and potential litigation exposure,...