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We contribute to research and policy making by providing evidence about the relation between auditor-provided non-audit services and audit outcomes across three levels of client-auditor relationships. We exploit an institutional setting where partner identity and auditor-provided non-audit services are reported in the annual report so that economic-bonding between the client and auditor can be identified at the audit engagement partner, office and audit firm levels. We analyze economic bonding at different levels because the extent of economic incentives and client-auditor relations potentially differ across these levels.  Audit outcomes are measured by discretionary accruals, accruals quality and earnings persistence using a sample of firms listed on the Australian Stock Exchange in fiscal years 2007 to 2008. We find evidence that higher client non-audit fees are associated with lower accruals quality at the partner, office and firm level. Higher levels of non-audit service fees are related to less persistence for operating cash flows and accruals at the partner level.

Auditor independence, Financial reporting quality, Engagement Partner, Non-audit fees