The effects of tax aggressiveness and complexity on investors' preferences for joint provision of tax and audit services

Tax aggressiveness;source credibility;Joint Provision;Independence

Birkey, Rachel

关键词: Tax aggressiveness;    source credibility;    Joint Provision;    Independence;   

Others  :  https://www.ideals.illinois.edu/bitstream/handle/2142/34498/Birkey_Rachel.pdf?sequence=1&isAllowed=y

美国|英语

来源: The Illinois Digital Environment for Access to Learning and Scholarship

【 摘 要 】

Joint provision of tax and audit services has been under regulatory scrutiny for over a decade.I use a source credibility framework to map the costs and benefits of joint provision to the components of source credibility, competence and trustworthiness, to explain the effect of aggressiveness and complexity on investors’ preferences and subsequent investment decisions.Experimental results indicate that investors prefer tax preparation to be provided by an accounting firm not engaged as the auditor rather than by an accounting firm jointly providing tax and audit services.Results also indicate that although aggressiveness does not affect this preference, complexity increases investors’ preference for non-joint provision.Additional results indicate that the auditor tax preparer is perceived to be less competent and less trustworthy than the non-auditor tax preparer.This study contributes to the accounting literature on joint provision, with implications for both tax providers and managers.