... covenants. In examining audit effort implications for borrowers, we find that ACPs are associated with higher audit fees and longer audit report lags. This is consistent with auditors responding to the litigation risk ACPs impose. In samples where the risk of third-party litigation is greater...

... of Business and IT, Finance Department, Southfield, MI, USA. Editor’s note: Accepted by Adi Masli, under the Senior Editorship of Jayanthi Krishnan. 20 07 2022 05 08 2023 06 09 2023 2023 goodwill impairment critical audit matters disclosure PCAOB audit fees AUDITING...

... University, College of Business, Adkerson School of Accountancy, Starkville, MS, USA. Editor’s note: Accepted by Chan Li, under the Senior Editorship of Jayanthi Krishnan. 2023 08 07 2022 15 08 2023 23 08 2023 turnover financial reporting risk audit fees financial...

... control, and contribute to evidence gathering and information sharing in the conduct of the audit. Using a large sample of Belgian private firms with data on employee training, we find that a one standard deviation increase in clients’ training cost (hours) reduces audit fees by approximately 3.4 percent...

...Feiqi Huang; Tawei Wang; Ju-Chun Yen SUMMARY This study investigates whether audit clients’ blockchain activities (including crypto-related activities) affect audit risk by examining the association between blockchain disclosures in 10-K filings and audit fees. Focusing on U.S. firms between 2013...

...Dahlia Robinson; Thomas Smith; Stephanie Walton SUMMARY We examine whether audit engagements where the client has never switched auditors (original auditors) are associated with different audit fee and audit quality outcomes, relative to engagements that have experienced an auditor change. We...

..., and whether quality concerns are realized. Then, for non-pro bono audits, we calculate abnormal audit fees and examine their impact on audit quality. We find that pro bono audits are mainly supplied by Big 4 auditors to charities with greater public donations, a lower debt ratio...

... find that in industries with more complex accounting, clients of M&A expert auditors are less likely to experience M&A-related misstatements. In industries with less complex accounting, M&A experts pass audit fee savings to their clients during acquisition years. Additional analyses suggest...

... in recent years. We extend the traditional framework used to classify audit fee research by adding a novel structure that focuses on political, economic, social, technological, legal, and environmental/ecological factors (a PESTLE analysis). We provide a systematic review of the literature on external...

...Matthew J. Beck; Matthew Glendening; Chris E. Hogan SUMMARY We examine the consequences of firms' disaggregation choices for auditor effort and audited financial statements. We document a significant positive association between disaggregation and audit fees, our proxy for auditor effort. Using...

.... However, we also find that the reporting behavior of prior-auditor CFOs becomes more aggressive over time as the salience of their audit experience decays. Further, we find that audit fees are lower for clients with prior-auditor CFOs but increase as the CFOs' time away from auditing increases. Overall...

...Effiezal Aswadi Abdul Wahab; Willie. E. Gist; Ferdinand A. Gul; Mazlina Mat Zain SUMMARY This study examines the relationship between outsourced internal audits, nonaudit services, and audit fees. We use Malaysian data to show that client firms that outsource their internal auditing function (IAF...

...Chiraz Ben Ali; Sabri Boubaker; Michel Magnan SUMMARY This paper examines whether multiple large shareholders (MLS) affect audit fees in firms where the largest controlling shareholder (LCS) is a family. Results show that there is a negative relationship between audit fees and the presence, number...

... basis and regress audit fees on drought intensity after controlling for other known factors of audit fees. We document that auditors charge significantly higher audit fees for client firms headquartered in areas affected by drought. The effect of drought on audit fees is more pronounced among firms...

... auditor choice Big 4 auditors audit fees audit quality competition Regulators, researchers, and practitioners have long recognized the importance of understanding the effects of audit market competition on audit outcomes ( Simunic 1980 ; GAO 2003 ; Oxera 2006 ; GAO 2008 ). Archival proxies...

... to shareholders, we find that characteristics of managerial tone that reflect impaired source credibility are associated with higher audit fees. Additional tests, including a change analysis and controls for other managerial characteristics, future client performance, and aggressive accounting choices...

...William J. Moser SUMMARY I examine whether terrorism or the risk of future terrorism affects audit fees paid by companies around the world. In the existing audit fee literature, it is unclear how terrorism risk enters the theoretical framework for audit fees. Using both a levels analysis...

... where the audit firm issuing office changed but the audit firm did not change and investigate the effect of these changes on the audit. Our results indicate that companies that have a change in their audit firm's issuing office exhibit a decrease in audit quality and an increase in audit fees...

... by charging higher audit fees, (2) whether they anticipate and price material cybersecurity risk before cyber incidents occur, and (3) whether increases in audit fees for firms experiencing a cyber incident in the current period are associated with subsequent cyber incidents. We find that only cyber incidents...

...Bradley P. Lawson; Gerald S. Martin; Leah Muriel; Michael S. Wilkins SUMMARY Using a sample of public firm FCPA violations, we investigate how auditors respond to FCPA risk. We find that audit fees are higher for FCPA violators beginning in the violation period with an additional increase during...