Public Accounting Firms and the Acquisition of Nonaudit Services by Public and Closely-Held Companies.

This study profiles the acquisition of nonaudit services for a sample of public and closely-held companies. The analysis includes nonaudit services acquired from both incumbent audit firms and other public accounting firms. Most companies in the sample purchased nonaudit services. The companies primarily used their incumbent audit firms rather than other public accounting firms for nonaudit services. No significant differences were noted between public and closely-held companies with respect to use of incumbent audit firms or other public accounting firms, types of nonaudit services purchased, or relative magnitudes of expenditures for nonaudit services.