BUKU ABSTRAK - Universiti Putra Malaysia

Social Sciences
The Effect of Joint Audit and Non-audit Services on Perceived Auditor
Independence
Assoc. Prof. Dr. Zulkarnain Muhamad Sori
Faculty of Economics and Management, University Putra Malaysia,
43400 UPM Serdang, Selangor, Malaysia.
+603-8946 7755; zms@putra.upm.edu.my
The aim of this paper is to examine the impact of competition in audit market and client importance to
perceived auditor independence from the perspective of Malaysian auditors, loan officers and senior managers
of public listed companies. It is found that auditor independence would be threatened if auditors were to receive
significant fees from a single client. The dependence on a single client would cause auditor to face a ‘self-threat’
risk, where they were economically and financially reliant on a single customer. The interview survey disclosed
that regulatory authorities should closely monitor the profession by persistently scrutinising each audit firm’s
revenue and expenses.
Keywords: Competition, audit market, auditor, competition, reporting
Dynamic Analysis of Regional Convergence in Indonesia
Assoc. Prof. Dr. Zulkornain Yusop
Muhammad Firdaus
Faculty of Economics and Management, University Putra Malaysia,
43400 UPM Serdang, Selangor, Malaysia.
+603-8946 7631; zulkornain.yusop@gmail.com
This study examines income convergence among provinces in Indonesia using dynamic panel data approach.
The results show that static and dynamic panel data approaches produce different results of convergence patterns.
Consistent with the theory, the Ordinary Least Square (OLS) and fixed-effects estimators provide the upper
and lower bounds. The first-differences generalized method of moments (FD-GMM) provides invalid estimators
which are lower than the coefficient from the fixed effects estimators due to the weak instruments problem.
The system-GMM (SYS-GMM) estimators are found to be unbiased, consistent and valid. They show that
convergence process prevails among provinces in Indonesia for the period 1983 - 2003. However the speed of
convergence is relatively very slow (0.29) compared to other studies in developing countries.
Keywords: Dynamic panel data, income convergence, Indonesia
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