It is the External Accountant Matter in Business Performance of Small and Medium Enterprises? The Role of Non-Audit Services

Abstract

This study investaged the pattern of utilization of Non-Audit Services using by SMEs and examined whether there is any relationship between utilisation of non-audit services and business performance of SMEs. Past literatures has discovered that the external accountant is the first choice of a venue for SMEs to seek advice to assist them in their business. This advice can be in terms of business strategy, risk management, bookkeeping, preparation of tax compliance and internal audit and so on are termed as “Non Audit Services (NAS)” in the auditing literature. A total of 126 useable responses were used in the analysis. The research findings indicated that utilization NAS from external accountant have a significant effect on business performance. Furthermore, SMEs purchased more taxation services compared to other services. This study contribute to the knowledge of academic literature in the form of empirical evidence and support the knowledge base view theory. Furthermore, enhance the academician knowledge and assist the relevant parties (MIA, accounting and audit firm) to understand the impact of NAS on business performance.