Journal ArticleDOI
An empirical analysis of audit pricing and auditor selection: evidence from India
TLDR
In this article, the authors examined various factors affecting the pricing of audit services and the selection of auditors in the Indian audit market and found that auditors tend to charge an audit fee premium when they are affiliated to a Big 4 auditor, have industry specialization or jointly provide auditing and non-auditing services.Abstract:
This paper aims to examine various factors affecting the pricing of audit services and the selection of auditors in the Indian audit market. This paper also aims to investigate the impact of financial distress conditions on the audit pricing and auditor choice decisions of a firm, particularly in the context of a developing economy.,The sample comprises 22,644 firm-years for 1,366 Indian firms from 1990 to 2015. The authors adopt ordinary least squares regression technique to model audit fee, and logistic regression technique to model auditor choice as a function of various factors relating to firm attributes and auditor characteristics.,This paper finds that auditors tend to charge an audit fee premium when they are affiliated to a Big 4 auditor, have industry specialization or jointly provide auditing and non-auditing services. Additionally, firms with larger boards, higher proportion of independent board of directors and CEO–Chairman separation are more likely to choose a Big 4-affiliated auditor. The results also suggest that financially distressed firms tend to pay significantly lower audit fees and are more likely to choose non-Big 4 auditors.,This paper is among the few studies which investigate how financial distress impacts the audit pricing and auditor choice decisions of a firm in the context of emerging economies. The findings of this paper raises serious concerns about the credibility of the audited financial statements and corporate governance mechanisms of firms undergoing financial distress. The empirical results of this paper have strong implications for practitioners, regulators and investors.read more
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Voluntary audit committees, auditor selection and audit quality: evidence from Taiwan
TL;DR: In this paper, the authors investigate the effect of the formation of audit committees on the selection of individual audit partners and audit quality in the Taiwan setting, where audit partners' names are presented in the audit report and where audit committee formation is voluntary in the initial stage of audit committee reform.
Posted Content
Agency conflicts and the demand for non-audit services
TL;DR: In this paper, the authors examined the impact of agency costs on the demand for non-audit services (NAS) in Germany and found that none of the proxies for agency conflicts were significantly associated with the purchase of NAS.
Journal ArticleDOI
Big-4 auditors and audit quality: a novel firm life-cycle approach
TL;DR: In this paper , the authors examined whether and how the effect of Big-4 auditors on client firms' audit quality varies across firms' life-cycle stages and found that the audit quality of growth-and mature-stage B4A and NB4A client firms is not significantly different.
Journal ArticleDOI
Current Year Audit Opinion and Next Year Audit Fees: Does Family Ownership Matter?
TL;DR: In this paper, the authors investigated the relationship between audit fees and type of audit opinion and the impact of family ownership on audit fees in the Egyptian stock market and found no significant association between current year audit opinion with next year audit fees.
Journal ArticleDOI
Bibliometric Analysis Research on Audit Nexus in Corporate Governance
TL;DR: In this paper , an overview of the evolution of scholarly literature on the relationship between audit and corporate governance in peer-reviewed publications published between 2010 and 2020 is provided, highlighting document type, publication trend, journal types, influential authors, impactful papers, and keyword co-occurrence network through VOSviewer visualisation.
References
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