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This study examines the effect of non-audit fees (NAF) provisions on interest payments classification shifting. In addition, we investigate to what extent the NAF economic bonding and interest payments classification shifting is contingent on internal governance and firm financial well-being.

This study employed probit regression using a sample of UK non-financial firms indexed in FT UK (500) over the period from 2009 to 2017.

We find evidence that the economic bonding of NAF between external auditors and their clients is more likely to encourage managers in UK firms to manipulate operating cash flows through interest payment classification shifting. In addition, and interestingly, our results evince that classification-shifting may be the less costly and soft choice of managers in firms with strong governance and charging higher NAF. Furthermore, we show that financially distressed firms associated with their auditors in purchasing non-audit services are more prone to attempting to manipulate and engage in interest payments classification-shifting. Our result did not provide a significant effect of external auditor tenure on the interest payments classification shifting.

Our findings are subject to the following limitations: First, this study uses a composite index to measure the quality of internal corporate governance. It focuses only on the board of directors, but this index does not reflect other internal governance mechanisms. Second, this study is subject to limited study time due to the implementation of key IFRS standards (IFRS 9 Financial Instruments and IFRS 15 Revenue from Contract with Customers) from 2018–2019.

This study was motivated by the UK’s Financial Reporting Council regulators' pressure on the Big 4 audit firms to move more audit time into main auditing activities, reduce cross-selling to audit clients and separate their audit practices by 2024. Overall, we provide new evidence that directs a close spotlight on the threats of NAF that are potentially useful to regulators, shareholders and investors.

It is motivated by the UK’s Financial Reporting Council regulators' pressure on the Big 4 to move more audit firm time into main auditing activities, reduce cross-selling to audit clients and separate their audit practices by 2024. Overall, we provide new evidence that directs a close spotlight on the threats of NAS that are potentially useful to regulators, shareholders and investors.

Normal-weight obesity (NWO), characterized by normal body mass index (BMI) but excess body fat, is a potential contributor to chronic diseases. This study aims to assess the relationship between this phenomenon and some metabolic factors in a population of Iranian employees.

This cross-sectional study was conducted on Iranian employees from the baseline data of Employees Health Cohort Study, Shiraz, Iran. Anthropometric measures, including weight, height, waist circumference and percentage of body fat, were obtained from the cohort database. The participants were divided into three groups: healthy, normal-weight obese and overweight/obese. Metabolic variables including blood pressure, fasting blood sugar, lipid profile, liver function enzymes and metabolic syndrome were assessed in relation to the study groups.

A total of 985 participants aged 25–64 years were included. Males with NWO had significantly higher alanine aminotransferase (ALT) levels compared to the healthy group in the fully adjusted model. Also, high-density lipoprotein (HDL) was significantly lower among females with overweight/obesity than healthy group when adjusted for age and energy intake. Furthermore, after adjusting for age and energy intake, both genders in the overweight/obese group showed significantly elevated systolic and diastolic blood pressure, while this was not observed for the NWO group. Lastly, metabolic syndrome was more prevalent in NWO as well as overweight/obesity.

These findings further encourage identification of excess body fat, even in normal-weight individuals, to prevent chronic metabolic diseases. Special attention should be paid to subgroups with sedentary occupations, as they may be at increased risk for NWO-related health issues.