We document a fee premium for audit partners who have gained expertise in digitalization by specializing in highly or similarly digitalized clients. Overall, our evidence is consistent with the view that the digitalization of a client's business and information systems provides audit partners an...

This study examines the role of an individual auditor's cognitive ability in delivering high-quality audits. Our results from analyzing archival data from Sweden show that audit partners' IQ scores obtained from psychological tests are positively associated with going-concern audit reporting...

This study examines whether boards of directors use external auditing to protect their reputation capital. We hypothesize and find that audit quality increases with the level of directors' reputation capital. More specifically, using ten-year panel data on Finnish listed companies, we find that...

Audit pricing, along with its determinants, forms one of the most extensively investigated areas in audit research. Recent years have seen increasing interest in the macro-level determinants of audit fees related to differences in audit environments around the world. To answer the resultant call...

Using a large proprietary data set from the internal records of the Finnish Tax Administration for the fiscal year 2011, we examine the factors that trigger adjustments by the tax authority to the taxable income reported by around 25,000 small private companies. Using that data, we develop a new...

This study investigates the extent to which the pressures from outside stakeholders, specifically the providers of debt and trade credit, as opposed to owner-managers' internal needs explain the use of voluntary audits in micro-companies. Whereas previous studies have mainly focused on how bank...

We examine the effect of changes in audit risk standards on the conduct of financial statement audits in a European setting. We investigate this by analysing the audit hours and audit fees for clients of Big 4 audit firms in Finland in 1996 and 2010. Our results show that audit firms became more...

Client- and auditor-related attributes are well-documented and often synthesized determinants of audit pricing. Particularly in recent years, the audit fee literature has undergone rapid growth in empirical archival research regarding the effect of external factors on audit pricing. We extend...

This study investigates whether the market's perception of auditor quality makes a difference to the market value of a firm using a sample of 1 915 takeover offers in the USA over the period 1990 to 2005. The study finds, as hypothesised, that the takeover process makes a smaller correction to...

The purpose of this study is to uncover additional determinants of the demand for voluntary audit in micro-companies by investigating the internal management factors that have not yet been explored in prior literature. The hypotheses are developed from the literature and interviews with...