Managerial Incentives and Audit Fees: Evidence from the Mutual Fund Industry
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This article examined the relation between audit fees and managerial incentives in the mutual fund industry and found that audit fees are higher when managerial incentives are poor, and that managerial incentives were correlated with audit fees.Abstract:
We examine the relation between audit fees and managerial incentives in the mutual fund industry. Using proxies for managerial incentives based on fund organizational form, advisor compensation, and fund expenses, we find that audit fees are higher when managerial incentives are poor. Our results represent new evidence on the relation between audit fees and managerial incentives.read more
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Why do corporate managers misstate financial statements? The role of option compensation and other factors
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Auditors' Perceived Business Risk and Audit Fees: Analysis and Evidence
TL;DR: In this paper, the authors analyzed the relation between auditors' perceived business risk and audit fees to determine whether audit firms or their clients bear the expected legal costs of business risk.
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