A Research On The Relationship Between CPA's Non-audit Services And Auditing Independence

With the development of market economy, CPA not only provides audit services to clients, but also provides non-audit services, including Management Consulting Service. Non-audit services, as CPA's traditional service items, had already existed while audit services were growing vigorously. However, within quite a long time, audit was regarded as the key business of CPA profession in our country, while non-audit services did not arouse people's attention. With taking diversification strategy and expanding NAS, many foreign CPA firms have grown up quickly.Independence is the key to the moral of CPA owing to its close relationship to survival of the CPA business. Loss of independence, the CPA will have lost the meaning of existence. From the reality of our situation and the foreign research results and practical experience, it is important for us to make further study based on our own situation.Study on the impact between non-audit services and auditor independence can be traced back to the seventies of the 20th century. Today, it has not reached a consensus yet. Some people think that non-audit services will affect the audit independence, but some people show that non-audit services will not affect the audit independence. For these reasons, this paper uses institute of CPA issued by the type of audit opinion list firms as agent variables of audit independence. In order to reveal whether the provision of audit services and non-audit services would affect the audit independence or not, the non-audit services on the independence of the empirical study.First, we chose the disclosed management consulting services in the annual reports of listed companies in 2003-2007 year as the study samples, and then use the logistic regression analysis of 130 samples which was selected conduct the study, considering the11 control variables, the results showed that: the provision of non-audit services does not reduce the audit independence. Instead, it helps to enhance the independence of the audit. Finally, the degree of the impairment depends on the proportion and type of NAS as well as the resistibility of CPA, according to which, we should take measures to regulate the NAS market .Based on such conclusion and further analysis of current situation of CPA in China, the thesis proposes several suggestions to future development of NAS in Chinese accounting service market.