| Summary: | 博士 === 國立雲林科技大學 === 會計系 === 105 === This study examines the association between non-audit services and operating performance of audit firms in Taiwan. Empirical data source from 1992-2014 Survey Report of Audit Firms in Taiwan, published by the Financial Supervisory Committee,Executive Yuan.
Non-audit services include four major categories, including tax services,management advisory services, corporate registration services, and bookkeeping and other services. This study divides sampling period into four sub-periods. Period 1 refers to pre-SOX (1992- 2002) and period 2 belongs to post-SOX (2003-2004). The period 3 covers the years after the passage of Certified Public Bookkeepers Act but before the amendment of Certified Public Accountant Act (2005-2007). Period 4 defined as the time periods after the amendment of Certified Public Accountant Act to 2014 (2008-2014). Based on organization type, this study classifies total sample into four sub-samples, including large, medium and small audit firms.
For both large and medium audit firms, non-audit services except management advisory services are affected by the short-term legal environment but have no positive effects on operating performance. Non-audit services are not affected by the short-term legal environment but have positive effects on operating performance in the small audit firms. In terms of the provisions of non-audit services, both large and medium audit firms are feasible to render management advisory services but small audit firms can develop all non-audit services.
In terms of the long-term legal environment, large audit firms can still devote to tax services but medium audit firms need to reduce corporate registration services. To maintain good operating performance, small audit firms are advised to break through the dilemma in the provisions of bookkeeping and other services to meet the increasing demand for the services.
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