Audit clients compromised by non-audit services fees, impacting independence.
The study looked at whether providing non-audit services to companies affects how independent auditors are in their work. They found that when companies pay a lot for these services, auditors may not be as independent in their thinking, especially if the audit fees are lower than expected. However, the stock market still sees some benefits from these services, like better returns on investments. Overall, the study suggests that changes in auditing rules in the EU are a good idea.