scholarly journals Audit Office Size, Audit Quality and Audit Pricing

2009 ◽  
Author(s):  
Jong-Hag Choi ◽  
Jeong-Bon Kim ◽  
Chansog (Francis) Kim ◽  
Yoonseok Zang
Keyword(s):  
Audit Quality ◽  
Audit Pricing ◽  
Office Size

scholarly journals Audit Office Size, Audit Quality, and Audit Pricing

2010 ◽  
Vol 29 (1) ◽  
pp. 73-97 ◽  
Author(s):  
Jong-Hag Choi ◽  
Chansog (Francis) Kim ◽  
Jeong-Bon Kim ◽  
Yoonseok Zang
Keyword(s):  
Firm Size ◽  
Audit Quality ◽  
National Level ◽  
Audit Fees ◽  
Specific Factor ◽  
Audit Pricing ◽  
Audit Firm ◽  
Industry Leadership ◽  
Office Size ◽  
Office Level

SUMMARY: Using a large sample of U.S. audit client firms over the period 2000–2005, this paper investigates whether and how the size of a local practice office within an audit firm (hereafter, office size) is a significant, engagement-specific factor determining audit quality and audit fees over and beyond audit firm size at the national level and auditor industry leadership at the city or office level. For our empirical tests, audit quality is measured by unsigned abnormal accruals, and the office size is measured in two different ways: one based on the number of audit clients in each office and the other based on a total of audit fees earned by each office. Our results show that the office size has significantly positive relations with both audit quality and audit fees, even after controlling for national-level audit firm size and office-level industry expertise. These positive relations support the view that large local offices provide higher-quality audits compared with small local offices, and that such quality differences are priced in the market for audit services.

Audit Office Size, Audit Quality and Audit Pricing: Evidence from Small and Medium Sized Entities

2011 ◽  
Author(s):  
Stefan Sundgren ◽  
Tobias Svanström
Keyword(s):  
Audit Quality ◽  
Audit Pricing ◽  
Office Size

scholarly journals Audit office size, audit quality and audit pricing: evidence from small- and medium-sized enterprises

2013 ◽  
Vol 43 (1) ◽  
pp. 31-55 ◽  
Author(s):  
Stefan Sundgren ◽  
Tobias Svanström
Keyword(s):  
Audit Quality ◽  
Audit Pricing ◽  
Office Size

scholarly journals The effect of big four office size on audit quality

2007 ◽  
Author(s):  
Dong Michael Yu
Keyword(s):  
Audit Quality ◽  
Office Size ◽  
Big Four

Does Regulating Audit Pricing Enhance Audit Quality and the Timeliness of Audit Reporting? The Texas Experience

2020 ◽  
Vol 5 (1) ◽  
pp. 1-64 ◽  
Author(s):  
Gopal V. Krishnan ◽  
Paul Tanyi
Keyword(s):  
Audit Quality ◽  
Audit Pricing

Customer-Base Concentration: Implications for Audit Pricing and Quality

2018 ◽  
Vol 31 (1) ◽  
pp. 129-152 ◽  
Author(s):  
Gopal V. Krishnan ◽  
Panos N. Patatoukas ◽  
Annika Yu Wang
Keyword(s):  
Audit Quality ◽  
Audit Fees ◽  
Customer Relationships ◽  
Data Availability ◽  
Audit Process ◽  
Audit Pricing ◽  
External Auditors ◽  
Customer Base ◽  
Conventional View ◽  
Audit Fee

ABSTRACT What are the implications of major customer dependency, i.e., the degree of a supplier firm's dependency on its major customers, for external auditors? While the conventional view emphasizes the negatives of major customer dependency for client business risk, we find that suppliers with more concentrated customer bases spend less on audit fees. The evidence is consistent with reduced audit effort due to efficiency gains in the audit process, especially when suppliers with more concentrated customer bases share the same auditors with their long-standing major customers. The audit fee discount we identify does not imply that audit quality declines with customer-base concentration. In fact, we find that suppliers with more concentrated customer bases are less likely to experience material restatements of previously audited financial statements. Taking the external auditors' perspective, our study provides new managerial insights on the costs and benefits of major customer relationships for supplier firms. Data Availability: All data are available from sources identified in the text.

Audit Market Structure and Audit Pricing

2016 ◽  
Vol 31 (1) ◽  
pp. 57-81 ◽  
Author(s):  
John Daniel Eshleman ◽  
Bradley P. Lawson
Keyword(s):  
Fixed Effects ◽  
Audit Quality ◽  
Audit Fees ◽  
Market Concentration ◽  
First Year ◽  
Audit Pricing ◽  
Ongoing Debate ◽  
Audit Market ◽  
Big 4 ◽  
The U.S

SYNOPSIS Extant literature finds mixed evidence on the association between audit market concentration and audit fees. We re-examine this issue using a large sample of U.S. audit clients covering 90 metropolitan statistical areas (MSAs) spanning 2000–2013. We find that audit market concentration is associated with significantly higher audit fees, consistent with the concerns of regulators and managers. We also find that increases in audit market concentration are associated with fewer initial engagement fee discounts (i.e., reduced lowballing), particularly for non-Big 4 clients. We reconcile our findings with those of prior research and find that our divergent findings are attributable to controls for MSA fixed effects. In supplemental analyses, we find that audit market concentration is associated with higher audit quality. We also find that concentration is associated with higher audit quality for first-year engagements, but only if the auditor does not lowball on the engagement. Our results are relevant to the ongoing debate regarding the consequences of increased concentration within the U.S. audit market (GAO 2003, 2008). JEL Classifications: M41; M42; L13.

scholarly journals Auditor Locality, Audit Quality and Audit Pricing

2008 ◽  
Author(s):  
Jong-Hag Choi ◽  
Jeong-Bon Kim ◽  
Aini Qiu ◽  
Yoonseok Zang
Keyword(s):  
Audit Quality ◽  
Audit Pricing

scholarly journals The effect of audit market structure on audit quality and audit pricing in the private‐client market

2019 ◽  
Vol 47 (3-4) ◽  
pp. 456-488 ◽  
Author(s):  
Jeroen Raak ◽  
Erik Peek ◽  
Roger Meuwissen ◽  
Caren Schelleman
Keyword(s):  
Market Structure ◽  
Audit Quality ◽  
Audit Pricing ◽  
Audit Market
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