Purpose – This paper aims to investigate whether the expected implementation of Section 404(b) of the Sarbanes-Oxley Act (SOX 404(b)) (the integrated audit requirement) caused auditors to discount their audit fees for non-accelerated filers in anticipation of expected increased future economic...

For the past 20 years, researchers have viewed the pricing of audit services as a function of supply and demand, much like other commodities or services traded in the marketplace. The audit-pricing model, originally proposed by Dan Simunic (1980), has been used to explore various aspects of...