Audit/Tax Services/ What is the relationship between Audit and tax services?

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What is the relationship between Audit and tax services?

Tax audit as the critical review of the tax situation of a physical person or legal entity with a view to formulating an appreciation. Because their transactions are so numerous and complicated, both the companies and the tax auditors must rely on strong internal controls to ensure that information is classified and recorded properly for tax purposes According to Krishnan et al. (2013) find that Auditor provides tax services are connected with earnings management in the firm. In the same way the authors assumed that the auditor how provides tax services can improve financial reporting and audit quality. Few of literature review propose the discussion between auditor-provided tax services audit non-auditor provided tax services post-SOX. Maydew and Shackelford (2006) find the ratio of tax fees to audit fees change between 2001 to 2004 respectively from 1 to 0.25.

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