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...

This study investigates whether the auditors incorporate the implications of potential litigation risks arising from their client firms' earnings management through real activities manipulations (REM). Using a large sample of US firms, I find that REM is significantly positively related to audit...

There are multiple studies investigating firm performance, in particular studies identifying firm characteristics that drive performance. On the other hand, research on the pricing of audit fees provides credible evidence that the financial condition of a client is a critical factor, in the...

We question whether audit committee oversight, resource commitments, and the sourcing of internal audit functions have value implications for external audit reliance on internal audit assistance. When evaluating the quality of internal audit, professional standards guide external auditors to...

This paper investigates the effect of fair value reporting and its attributes on audit fees. We use as our primary sample the European real estate industry around mandatory IFRS adoption (under which reporting of property fair values becomes compulsory), due to its unique operating and reporting...

In this study, we examine the impact of conditional conservatism on audit fees and, more importantly, the influence of corporate governance on this relationship. Prior literature presents evidence regarding explanations for the existence and pervasiveness of accounting conservatism such as...

Audit fee negotiations conclude with the signing of an engagement letter, typically the first quarter of the year under audit. Yet investors do not learn the audit fee paid until disclosed in the following year's definitive proxy statement. We conjecture that negotiated audit fees impound...

In this paper, we examine how auditors respond in terms of audit fees, to cash holdings that are a growing concern in corporate America. Holding everything else constant, we find that cash holdings are positively related to audit fees, reflecting that auditors' react to the level of firms' cash...

We examined the change in audit fees after adoption of GASB 34 for a sample of 350 cities, correcting for audit fee inflation unrelated to GASB 34.We found that the mean (median) fee change for 2002 adopters was 4.9 (2.9) percentage points higher than for non-adopters. The mean (median) fee...