Audit Firms Exploiting Clients, Hurting Corporate Performance in Pakistan
The study looked at how audit and non-audit services provided by the same firm affect the performance of companies in Pakistan. They used data from financial statements and stock exchanges from 2012-2016. The findings show that higher fees for non-audit services are linked to lower firm performance. Interestingly, the fees for non-audit services were found to be higher than those for audit services in the same assignment. This study sheds light on the importance of separating audit and non-audit services for the corporate sector in Pakistan.