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The Relation between Excess Audit Fees and Credit Ratings

Bruno, Valentina - 2016

Credit rating agencies and auditors are complementary certification agents subject to a conflict of interest inherent in their compensation structure. We examine client firm credit ratings to test alternative hypotheses of abnormal audit fees. We predict and find both cross-sectional and time...

Persistent link: https://www.econbiz.de/10012987727

Determinants of Low-Balling of Audit Fees and Subsequent Recovery

Cho, Myojung - 2019

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 … clients. Further, low-balling auditors tend to recoup their initial fee discounts in subsequent periods via increases in audit …

Persistent link: https://www.econbiz.de/10012902906

Audit Fees and Book-Tax Differences

Hanlon, Michelle - 2010

This paper examines whether book-tax differences help explain audit fees. By attesting to the fair representation of financial information, auditors are an important intermediary in financial statement users' trust and understanding of financial information. Our evidence that large book-tax...

Persistent link: https://www.econbiz.de/10013150927

Do Auditors Allow Earnings Management When Audit Fees are Low?

Gupta, Parveen P. - 2012

Much of the extant audit research focuses on the impact of excess audit fees paid to the auditors on earnings management. However, there is limited empirical evidence on whether auditors tolerate earnings management when audit fees are low, i.e., below the level of normal fees. Using a large...

Persistent link: https://www.econbiz.de/10013114765

Further evidence on knowledge spillover and the joint determination of audit and non-audit fees

Krishnan, Gopal V.; Yu, Wei - In: Managerial auditing journal 26 (2011) 3, pp. 230-247

Persistent link: https://www.econbiz.de/10008938698

The Relation between Managerial Ability and Audit Fees and Going Concern Opinions

Krishnan, Gopal V. - 2014

While prior research has examined the relation between firm-level attributes and auditors' decisions, there is little empirical evidence on whether managerial attributes are informative to auditors. We examine the relation between managerial ability, i.e., ability in transforming corporate...

Persistent link: https://www.econbiz.de/10013043923

Customer-Base Concentration : Implications for Audit Pricing and Quality

Krishnan, Gopal V. - 2018

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...

Persistent link: https://www.econbiz.de/10012937960

Do Big 4 Auditors Enhance Audit Quality? An Analysis of Client Selection and Audit Adjustments

Chen, Songsheng - 2020

Recent research challenges the notion that the Big 4 auditors provide a higher quality audit relative to non-Big 4 and suggests that the Big N effect could be due to self-selection. We contribute to this debate by controlling for pre-audit earnings quality, an important omitted variable in prior...

Persistent link: https://www.econbiz.de/10012836784

The Relation between Audit Fee Cuts during the Global Financial Crisis and Earnings Quality and Audit Quality

Chen, Long - 2016

The Global Financial Crisis (GFC) presents a unique opportunity to study how auditors respond to an exogenous shock to the clients' operating environment. Also, due to the GFC, auditors were under pressure from clients to cut audit fees during the crisis. Regulators were concerned that lower...

Persistent link: https://www.econbiz.de/10012983068

Pro Forma Disclosures, Audit Fees, and Auditor Resignations

Chen, Long; Krishnan, Gopal V.; Pevzner, Mikhail - 2014

The disclosure of non-GAAP (pro forma) earnings numbers by managers in the post-SOX era continues to attract attention from regulators, media, and researchers. However, there is limited empirical evidence on how auditors view clients that emphasize pro forma earnings over GAAP earnings. We study...

Persistent link: https://www.econbiz.de/10014190310