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.  

International Branding Strategies : In Swedish and Russian Fashion Companies

There are a lot of different business strategies for any company. However, in the fashion industry, the best way to become successful is to develop the brand using special branding strategies. Hence, a brand is the main weapon for fashion companies, which helps to launch international market and to create loyal customers around the world. Nowadays, due to the difficult current political situations and the collapse of oil and the dollar a lot of companies in different industries have to change their business strategies. It is especially true for fashion companies, because they depend on consumers ' income and their purchasing power. In the case of the fashion industry, branding strategy development can be more effective, than just business strategy. Hence, this thesis discusses the following problem: What branding strategy should Russian and Swedish fashion companies choose in order to build a strong brand and enter the international market.  The purpose of this thesis is to analyze various branding strategies of Russian and Swedish fashion companies during the process of entering foreign markets. At the end of this thesis, practical contribution in their process of international branding strategy creation will be discussed. In order to answer research questions more broadly and accurately, the mixed research method, using quantitive and qualitative study through interviews and survey was chosen. Semi-structured interviews were made with the CEO and brand managers of Russian and Swedish fashion companies. Moreover, the survey was made with two different questionnaires: for Russian and for Swedish customers. In the case of qualitative research, the author found that fashion companies from Russia and Sweden have got not just some features and differences, but also common aspects. The primary data from interviews allowed the author to understand the specifics of brand management in the fashion industry. It was found, that there are some useful aspects in Swedish strategies, which can be used by Russian companies to develop their brands on the international market. In the case of quantitative research, preferences of consumers from Russia and Sweden were analyzed and also some features were identified. Survey results provided the author with a common understanding about purchase habits, attitudes and perceptions to fashion brands. According to these, some hypothesizes, which are formulated in the first part of the thesis, have been proven or disproven. It was found, that preferences of Russian and Swedish people are pretty the same, however Russian customers do not like to risk with new brands and prefer well-known and trusted brands while Swedish customers are open for any brand, which can satisfy their tastes.

Concurrent validity of the Swedish version of the life-space assessment questionnaire

BACKGROUND: The Life-Space Assessment (LSA), developed in the USA, is an instrument focusing on mobility with respect to reaching different areas defined as life-spaces, extending from the room where the person sleeps to mobility outside one's hometown. A newly translated Swedish version of the LSA (LSA-S) has been tested for test-retest reliability, but the validity remains to be tested. The purpose of the present study was to examine the concurrent validity of the LSA-S, by comparing and correlating the LSA scores to other measures of mobility. METHOD: The LSA was included in a population-based study of health, functioning and mobility among older persons in Sweden, and the present analysis comprised 312 community-dwelling participants. To test the concurrent validity, the LSA scores were compared to a number of other mobility-related variables, including the Short Physical Performance Battery (SPPB) as well as "stair climbing", "transfers", "transportation", "food shopping", "travel for pleasure" and "community activities". The LSA total mean scores for different levels of the other mobility-related variables, and measures of correlation were calculated. RESULTS: Higher LSA total mean scores were observed with higher levels of all the other mobility related variables. Most of the correlations between the LSA and the other mobility variables were large (r = 0.5-1.0) and significant at the 0.01 level. The LSA total score, as well as independent life-space and assistive life-space correlated with transportation (0.63, 0.66, 0.64) and food shopping (0.55, 0.58, 0.55). Assistive life-space also correlated with SPPB (0.47). With respect to maximal life-space, the correlations with the mobility-related variables were generally lower (below 0.5), probably since this aspect of life-space mobility is highly influenced by social support and is not so dependent on the individual's own physical function. CONCLUSION: LSA was shown to be a valid measure of mobility when using the LSA total, independent LS or assistive LSA.