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The Cost of Auditing Service Performance Information

Xikai Chen & Tom Scott

International Journal of Auditing2025https://doi.org/10.1111/ijau.12379article
AJG 2ABDC A
Weight
0.44

Abstract

This paper adds to prior literature by examining whether requiring the assurance of non‐financial information increases audit fees. Specifically, we use a sample of New Zealand not‐for‐profits (charities) newly required to prepare statements of service performance (SSP), following accounting standards and assured per auditing standards. We find evidence of a significant increase in audit fees, although there is no change in audit or filing lag. There is some evidence that adopting the New Zealand‐specific auditing standard for SSPs can reduce the increase in audit fees for smaller not‐for‐profits. Overall, our results suggest mandating non‐financial information should be viewed as having increased costs. These results are particularly salient considering the ever‐increasing push for non‐financial and sustainability information throughout the world.

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https://doi.org/https://doi.org/10.1111/ijau.12379

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@article{xikai2025,
  title        = {{The Cost of Auditing Service Performance Information}},
  author       = {Xikai Chen & Tom Scott},
  journal      = {International Journal of Auditing},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1111/ijau.12379},
}

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Evidence weight

0.44

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.32 × 0.4 = 0.13
M · momentum0.57 × 0.15 = 0.09
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.