...Nasser Alsadoun; Vic Naiker; Farshid Navissi; Divesh S. Sharma SUMMARY Although the Sarbanes-Oxley Act of 2002 (SOX) banned most nonaudit services (NAS), it did not restrict auditors from providing tax NAS to their audit clients. In the post-SOX period, regulators and investors are highly...

... Regulators believe that the economic importance of an audit client resulting from nonaudit services compromises the independence of the auditor and the quality of financial reporting (e.g., Levitt 1998 ; SEC 2000 ; Frankel et al. 2002 ). The extent to which the economic importance of an audit client...