Extending the existing literature on the impact of religiosity on human behavior, we argue that religiosity also has a significant impact on auditors' risk and trust behavior, which is reflected in lower audit fees. Higher religiosity values are expected to motivate auditors to provide higher...

This paper exploits a natural experiment to investigate the causal effects of the auditing fees on auditing quality: China recently imposed a minimum auditing fee requirement which forces some auditing firms to charge higher fees to their clients. We find a significant decrease in auditing...

Despite the popularity of pay-for-performance (P4P) among health policymakers and private insurers as a tool for improving quality of care, there is little empirical basis for its effectiveness. We use data from published performance reports of physician medical groups contracting with a large...

This study investigates whether a failed auditor suffers from reduced audit fees from clients who continue to employ him and whether the reduced audit fees are more pronounced when the failed auditor is not a market leader. The subject audit firm Deloitte Touche Tohmatsu (Deloitte), Hong Kong,...

Prior research provides mixed evidence about whether sufficient audit market competition exists and whether competition impairs or improves audit quality. A major impediment to this stream of research is the unobservable nature of the bidding process by which auditors compete for clients. In...

In this study we aim to undertake a comprehensive examination of the audit market in the UK covering the population of limited companies that have and/or are required to file audited accounts. The study will examine over a longer period (1998-2012) the trends in the audit market, measures of...

We provide evidence that distinguishes between competing production cost-based explanations of how to interpret unusually high (or low) audit fees and their expected relation with accounting quality. Abnormally high or low fees are typically proxied by the residuals obtained from fee models....