Audit firms goof more after lowering fees and providing non-audit services
Published: March 16, 2018 / Author: Michael Cohn
Michael Cohn, editor-in-chief of AccountingToday.com, wrote about new research by Erik Beardsley, assistant professor of accountancy at Mendoza College of Business.
When auditing firms, under pressure to lower their fees, push non-audit services, their clients’ financial statements tend to contain more errors, according to new research from the University of Notre Dame.
The study found increased rates of client financial misstatement among audit firms that increase their focus on providing non-audit services in the face of audit fee pressure, compared to audit firms that don’t.
Read the full story here.
Related Stories
Faculty in the Media
Research: How to close the gender gap in startup financing
Faculty in the Media
How to battle boredom at work
Faculty in the Media
Dull happens: Here’s how to stop boredom from impeding productivity
Faculty in the Media
Opinion: Boeing’s new boss should drop the suit and consider a hoodie