The Effect of Non-Audit Services on Auditor Independence : A study on 11 food retail- and wholesale companies in the United Kingdom

Purpose – The purpose of this study is to investigate the effect of non-audit services on auditor independence, and the importance of non-audit services as a source of income for audit firms in the United Kingdom. Design/method/approach – This study will examine 11 companies in the food retail- and wholesale industry during 2007 - 2014. Five indicators have been used; (1) Appointed auditor and provision of non-audit services to audit clients; (2) Auditor tenure; (3) Non-audit services in relation to total services; (4) Tax-services in relation to non-audit services, (5) Big Four’s revenue. Information has been collected using the quantitative approach through annual- and transparency reports. The threshold used to measure possible independence threats (self-review-, self-interest- and familiarity threat) has been set at 18,5 %. Findings – This study concludes that the jointly provision of audit- and nonaudit services possibly causes impairment of auditor independence, and that non-audit services is an important source of income for audit firms. The findings showed that in 99 %, companies purchased non-audit services from their statutory auditor. Non-audit services in relation to total services surpassed the threshold in 78 % of all financial years. Likewise, tax-services in comparison to non-audit services exceeded the threshold in 65 % of all financial years. The Big Four’s revenue from non-audit services to audit clients in relation to total revenue is almost constantly below the threshold. However, in all financial years except from one, total revenue from non-audit services surpassed revenue from audit services by far. Contribution – The study contributes to the ongoing discussion about nonaudit services effect on auditor independence. Originality/value – This study is one of few that provide detailed information about non-audit services in the food retail- and wholesale industry. It highlights social and ethical issues with regard to agency relationships.  

Through Eurocentric logics : The construction of difference in foreign news discourse on Venezuela

This study aims to explore the construction of difference in foreign news discourse on culturally similar but politically different non-Western subjects. Applying critical discourse analysis (CDA) together with a critique of Eurocentrism, the study examines difference in newspaper constructions of government supporters and oppositional groups in Venezuela. Discursive differences are evident in the strategies used for constructing the two groups with regard to political rationality and violence. Government supporters are associated with social justice, Venezuela’s poor, dogmatic behavior, and the use of political violence. The opposition, in contrast, is constructed as following a Western democratic rationale that stresses anti-authoritarianism. This group is primarily associated with victims of violence. While the opposition is conveyed as being compatible with Eurocentric values and practices, government supporters to great extent deviate from these norms. Such constructions serve to legitimize politico-ideological undercurrents of Eurocentrism, as the defense of liberalism.