Non-Audit Services and Knowledge Spillover: Evidence from Audit Hours and Billing Rates

Puntos clave

• Knowledge spillover enhances financial reporting quality, influencing audit practices in firms.
• Audit hours connected with non-audit services significantly impact billing rates, suggesting economic effects.
• Observational analysis of billing rates and audit hours reveals patterns of knowledge transfer achieved through services.
• The interaction of non-audit services and audit hours highlights potential economic implications for firms’ reporting strategies.