Audit, non-audit services and auditor independence

Regulators and stakeholders in worldwide capital markets have placed a great concern \non the potential threat of joint provision of audit and non-audit services to audit client \non perceived auditor independence. This study reports the research findings of the \neffects of the joint provision of audit and non-audit services (NAS) on perceived \nauditor independence from the perspective of Malaysian auditors, loan officers and \nsenior managers of public listed companies. The main findings of the study were that \nauditor independence would significantly threaten when audit and NAS were jointly \nprovided by audit engagement team, however, this perceptions were changed when \nexist proper segregation of duties or ‘Chinese Wall’ in audit firms either by way of \nstaff from separate department or entities.