The Effect of Quality Differentiated Auditor-Cum-Tax Agent on Corporate Tax Payable

This paper investigates the effect of employing the same auditor as the tax agent on the computation of corporate tax payable by the company listed on the Kuala Lumpur Stock Exchange. After auditing the financial statement, the auditor is appointed as a tax agent to do tax agent work to compute tax...

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Main Author:	Mohd. Jaafar, Embong
Format:	Thesis
Language:	eng eng
Published:	2004
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/1330/1/MOHD._JAAFAR_B._EMBONG.pdf https://etd.uum.edu.my/1330/2/1.MOHD._JAAFAR_B._EMBONG.pdf
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id	my-uum-etd.1330
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
topic	HG Finance
spellingShingle	HG Finance Mohd. Jaafar, Embong The Effect of Quality Differentiated Auditor-Cum-Tax Agent on Corporate Tax Payable
description	This paper investigates the effect of employing the same auditor as the tax agent on the computation of corporate tax payable by the company listed on the Kuala Lumpur Stock Exchange. After auditing the financial statement, the auditor is appointed as a tax agent to do tax agent work to compute tax payable. The competency of auditor-cum-tax agent is analysed by looking at the amount of audit work as reflected on audit fees. The independence of auditor-cum-tax agent is analysed by looking at the amount of non-audit work provided by the auditor as reflected by non-audit fees. On the other hand auditor cum-tax agent‘s reputation is examining by looking at auditor’s brand name. The results indicate that there is a positive relationship between the corporate tax payable and the audit fee charged which demonstrate that more audit work result in higher corporate tax payable computed by the auditor-cum-tax agent. Moreover, as predicted there is a negative relationship between tax payable and non-audit fees. This findings show that the more independent the relationship between auditor-cum-tax agent and clients, the higher is the tax payable. In addition Big Five firms’ clients pay higher tax than companies audited by non-Big Five firms. This shows that brand name or reputable auditor such as the Big Five can affect the computation of tax payable.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Mohd. Jaafar, Embong
author_facet	Mohd. Jaafar, Embong
author_sort	Mohd. Jaafar, Embong
title	The Effect of Quality Differentiated Auditor-Cum-Tax Agent on Corporate Tax Payable
title_short	The Effect of Quality Differentiated Auditor-Cum-Tax Agent on Corporate Tax Payable
title_full	The Effect of Quality Differentiated Auditor-Cum-Tax Agent on Corporate Tax Payable
title_fullStr	The Effect of Quality Differentiated Auditor-Cum-Tax Agent on Corporate Tax Payable
title_full_unstemmed	The Effect of Quality Differentiated Auditor-Cum-Tax Agent on Corporate Tax Payable
title_sort	effect of quality differentiated auditor-cum-tax agent on corporate tax payable
granting_institution	Universiti Utara Malaysia
granting_department	Sekolah Siswazah
publishDate	2004
url	https://etd.uum.edu.my/1330/1/MOHD._JAAFAR_B._EMBONG.pdf https://etd.uum.edu.my/1330/2/1.MOHD._JAAFAR_B._EMBONG.pdf
_version_	1747827122698715136
spelling	my-uum-etd.13302013-07-24T12:11:29Z The Effect of Quality Differentiated Auditor-Cum-Tax Agent on Corporate Tax Payable 2004 Mohd. Jaafar, Embong Sekolah Siswazah Graduate School HG Finance This paper investigates the effect of employing the same auditor as the tax agent on the computation of corporate tax payable by the company listed on the Kuala Lumpur Stock Exchange. After auditing the financial statement, the auditor is appointed as a tax agent to do tax agent work to compute tax payable. The competency of auditor-cum-tax agent is analysed by looking at the amount of audit work as reflected on audit fees. The independence of auditor-cum-tax agent is analysed by looking at the amount of non-audit work provided by the auditor as reflected by non-audit fees. On the other hand auditor cum-tax agent‘s reputation is examining by looking at auditor’s brand name. The results indicate that there is a positive relationship between the corporate tax payable and the audit fee charged which demonstrate that more audit work result in higher corporate tax payable computed by the auditor-cum-tax agent. Moreover, as predicted there is a negative relationship between tax payable and non-audit fees. This findings show that the more independent the relationship between auditor-cum-tax agent and clients, the higher is the tax payable. In addition Big Five firms’ clients pay higher tax than companies audited by non-Big Five firms. This shows that brand name or reputable auditor such as the Big Five can affect the computation of tax payable. 2004 Thesis https://etd.uum.edu.my/1330/ https://etd.uum.edu.my/1330/1/MOHD._JAAFAR_B._EMBONG.pdf application/pdf eng validuser https://etd.uum.edu.my/1330/2/1.MOHD._JAAFAR_B._EMBONG.pdf application/pdf eng public masters masters Universiti Utara Malaysia Allingham. M.G. and Sandmo, A. (1972). 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The Effect of Quality Differentiated Auditor-Cum-Tax Agent on Corporate Tax Payable

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