Download or read book The Determinants of Audit Fees Evidence from the Voluntary Sector written by Vivien A. Beattie and published by . This book was released on 2001 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: Given the growing demand for accountability in the public sector, there is a need to begin to investigate audit pricing issues in markets within this sector. This study makes three principal contributions. First, it develops and estimates, for the first time, a model of audit fee determinants relevant to the charity sector. The model is based on 210 of the top 500 UK charities with average incoming resources of 27 million pounds. As in previous private sector company studies, size, organisational complexity and audit firm location are the major determinants. A positive association between audit fees and fees for non-audit services is also observed. Charity sector factors of empirical significance include the fundamental nature of the charity (i.e., predominantly grant-making or fund-raising), the importance of trading as a source of charity income and the charity's activity. Separate models are developed for grant-making and fund-raising charities, the results reflecting the relative complexity of the audit of fund-raising charities. Second, the lower auditor concentration in the charity sector market, compared to the private sector market, permits a more powerful test of whether large firms and/or auditor expertise are rewarded with a fee premium. The results show that Big 6 audit firms receive higher audit fees (18.5%, on average) than non-Big 6 firms for audits of fund-raising charities. There is also evidence that non-Big 6 audit firms with expertise in the sector are rewarded with a fee premium over other non-Big 6 firms, again in the more complex audit environment of fund-raising charities.Finally, the study demonstrates that the charity audit fee rate is significantly lower than that of private sector companies; in fact it is approximately half. Further research that discriminates between alternative explanations of this differential is called for. A change in the reporting of charity audit fees is proposed to reflect any element of 'charitable giving' by the audit firm.
Download or read book Determinants of Audit Fees in the UK Unquoted Sector written by Tony Brinn and published by . This book was released on 1991 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Determinants of Audit Fees written by Frank Thinggaard and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines audit fees paid by all 126 non-financial companies listed on the Copenhagen Stock Exchange in 2002. The Danish institutional setting is theoretically interesting because listed companies are required to use two independent auditors, and the liberal regulation of auditor independence facilitates an examination of the association between consultancy fees and audit fees. Our results indicate that de facto joint audits, where both auditors have significant stakes in the audit, reduce audit fees compared with audits where one auditor is dominant, albeit only for larger companies. We attribute these results to competition between the auditors. Our results clearly confirm previous findings of a positive association between other fees and audit fees. On balance, we find the core audit fee determinants model to be well specified for the Danish data, although small companies seem to differ somewhat from large companies. Finally, we find no additional Big Four effect from the appointment of a second Big Four auditor. However, our results indicate that the use of PWC is associated with lower audit fees in large companies and higher audit fees in small companies.
Download or read book Research Handbook on Nonprofit Accounting written by Daniel Tinkelman and published by Edward Elgar Publishing. This book was released on 2023-08-14 with total page 449 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bringing together a diverse team of renowned accounting scholars, this incisive Research Handbook presents a comprehensive evaluation of current research on nonprofit accounting, noting its major accomplishments and outlining opportunities for future study.
Download or read book Determinants and Consequences of Audit Pricing for Charities Including the Provision of Pro Bono Audits written by Yitang (Jenny) Yang and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using unique Australian data, we first identify the determinants of the provision of pro bono audits to charities and examine their consequential audit quality. This advances our knowledge about how often and why auditors volunteer their services, 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, and operating in multiple locations. We are unable to identify evidence of impaired audit quality when comparing pro bono audits with non-pro bono audits. For non-pro bono audits, audit fees are significantly associated with size, complexity, and revenue sources, with premiums paid to larger audit firms. We find evidence consistent with reduced audit quality associated with negative abnormal audit fees for non-Big 4 audits.
Download or read book Main Determinants of Audit Fees written by Nyerho Odje Odje and published by . This book was released on 2016-09-23 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Determinants of Audit Fees in the U K Unquoted Company Sector written by Alessandro Marsella and published by . This book was released on 1993 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Determinants of Audit Fees and the Impact of Earnings Quality written by Wenjin Han and published by . This book was released on 2021 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Differences in Audit Pricing Between Voluntary and Mandatory Audits written by Juan L. Gandía and published by . This book was released on 2018 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: Purpose: Despite the extensive research on the determinants of audit pricing in both public and private settings, there is a lack of research about the differences in audit fees between voluntary audits and mandatory audits. This study addresses this gap. Design/methodology/approach: Firstly, a theoretical framework is developed to justify differences in audit pricing between voluntary and mandatory audits. Next, using a sample of Spanish private SMEs running from 2009 to 2014, we empirically test whether the fees charged for voluntary audits differ from those charged for mandatory ones. We also examine whether the premium observed among large auditors is persistent in the SME setting, and whether this premium differs depending on whether the audits are voluntary or mandatory. Findings: Although a preliminary analysis does not report significant differences in pricing between voluntary and mandatory audits, additional analyses using samples restricted by company size show that voluntary audits are charged with a premium. We observe a premium related to large auditors, and find no significant differences in the audit pricing of Big 4 auditors depending on the mandatory/voluntary nature of the audit, but the premium associated with Middle-Tier auditors disappears in the voluntary setting. Originality/value: This paper contributes to the previous literature by introducing the examination of differences in audit pricing between voluntary and mandatory audits. As far as we know, this is the first study to examine the differences in audit pricing between voluntary and mandatory audits. It also elaborates on studies on audit pricing in SMEs.
Download or read book Auditor Independence written by Ismail Adelopo and published by Routledge. This book was released on 2016-04-08 with total page 241 pages. Available in PDF, EPUB and Kindle. Book excerpt: In Auditor Independence, Ismail Adelopo argues that the importance of auditors' independence cannot be over-emphasised. Not only do auditors provide certification of the truth and fairness of the information prepared by managers, they also have a duty to express opinions on the degree of compliance with laws and regulations guiding a firm's operations. Theirs is a socially important responsibility. In all that has been proposed to mitigate the governance crisis and restore confidence in the market system, relatively little attention has been paid to auditor independence. Examining the historical role of auditing in corporate governance and the regulatory context, this book sets the function within a theoretical framework and then provides empirical analysis of the problem issues such as the relationship between audit committees and external auditors and the probity of providing non-auditing services to audit clients. The focus on matters that are damaging to market confidence and threatening to the reputation of the auditing profession, means the conclusions and recommendations in this book are important for key stakeholders, including policy makers, regulators, those running companies, and their investors and customers. This is also a book for those responsible for training in the auditing profession and for others with a research or academic interest in the matters addressed.
Download or read book An International Examination of Country specific Determinants of Audit Fees written by Michele LeCouteur Wingate and published by . This book was released on 1994 with total page 248 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Determinants of audit fees in the UK unquoted sector written by Tony Brinn and published by . This book was released on 1991 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Managerial Economics of Non Profit Organizations written by Marc Jegers and published by Routledge. This book was released on 2008-02-14 with total page 176 pages. Available in PDF, EPUB and Kindle. Book excerpt: The first book to bring together microeconomic insights on the functioning of non-profit organizations, this volume complements the wide range of books on the management of non-profit organizations by focusing on both theoretical and empirical work.
Download or read book Determinants of Low Balling of Audit Fees and Subsequent Recovery written by Myojung Cho and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Auditors' low-balling in initial engagements is a longstanding concern for regulators and others. We examine the determinants and consequences of low-balling using more recent data. We provide evidence that auditors are likely to low-ball if they are “Big N” auditors, expect future revenues from non-audit services, or are quoting large, profitable, and important clients. Further, low-balling auditors tend to recoup their initial fee discounts in subsequent periods via increases in audit and non-audit fees. We also find that clients of low-balling auditors are more likely to restate in the subsequent period. Our findings suggest that low-balling is associated with greater future economic dependence on the client and have implications for auditor independence and audit quality.
Download or read book The Determinants of Audit Fees written by Wafaa Abdel Magid Ramzy and published by . This book was released on 1988 with total page 217 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Impact of Mandatory Audit Firm Rotation on Audit Fees written by Masoud Azizkhani and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: A mandatory audit firm's rotation policy has been adopted in many counties, including Iran, as a mechanism to improve auditor independence and in turn, audit quality. Proponents of this policy claim that its results are increased clients' audit costs. Using data from firms listed in Tehran Stock Exchange where the mandatory audit firm rotation was required from 2007, this study provides empirical evidence of the economic impact of this policy initiative on audit fees. We examine the impact of both voluntary and mandatory audit firm switch on audit fees for a sample of firms listed on TSE that covers 2006 to 2013. We find no relation between mandatory audit firm rotation and audit fee. Our results suggest that the mandatory audit firm rotation does no impact on audit costs. Other results also show that there is a positive association between voluntary audit firm rotation and audit fees.
Download or read book The Determinants of Audit Fees written by Christopher K. M. Pong and published by . This book was released on 1992 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt:
