An investigation into auditors’ independence and the provision of non-audit services in Ireland

Abstract

The issue of auditors providing non-audit services (NAS) is one of the most debated topics within the accounting profession at present. The debate over whether audit firms should supply NAS to their audit clients centres on the proposition that providing such services impairs auditors’ independence.

In conducting the study, the researcher used both primary and secondary research. The researcher used a combination of both questionnaires and interviews. Questionnaires were sent out to the top twenty accounting firms and interviews were conducted with the accounting bodies, namely, CPA, ACCA, IIPA, and also with IAASA and the ODCE.

The findings suggest that there is some need for change in the area of auditors’ providing NAS. The main findings suggest that more disclosure is required in the annual report and the current rules and regulations are only in part sufficient to prevent the auditor losing independence whilst providing NAS. However, the findings do not seek the need for a ban on auditors providing NAS to their audit clients despite the recent exposure of the so called problem.