The risk premium is a part of Efficient Market Theory. The free market yields an adequately large risk premium in order to cover the costs of risk. On the other hand, respecting in practice the adequate risk premium size (wages, prices) makes the market more efficient. Many other fields of...

This study investigates auditor-provided tax services from 2000 to 2002, during which fees paid to auditors for nonaudit services (NAS) were disclosed, but separate disclosure of tax service fees was voluntary. We examine changes in the market for tax NAS in 2002, as Congress debated possible...

We extend Dopuch, King and Schwartz (2003) by examining the effect of various fee ratios on investor perception of auditor independence and market behavior. Consistent with Dopuch et al. (2003), we find disclosure of nonaudit fees reduces the accuracy of investor perception of auditor...

Monetary system is undoubtedly a venture, which has developed in the course of the history. Many facts from historical and even pre-historical times testify to a variety of possible ways of understanding the affairs of money; however, the relationship between money and productivity of labor has...

This study examined whether auditors, when they are processing mixed evidence, take into consideration the chronological order of the evidence (giving rise to what this study refers to as a trend effect), or if their evaluations are influenced primarily by the order of presentation (giving rise...

I investigate how the trend in audit practice of including face-to-face discussions between the preparer and the reviewer affects audit team performance. Specifically, I focus on the timing of reviewer/preparer discussion and explore whether performance of the audit team in a task involving a...

The analysis in this paper shows that monetary issues are no longer merely of macroeconomic character. Indeed, they are also an important theoretical problem of accounting theory. The accounting unit or unit of measure agenda in the money economy is indispensable to accounting theory. Adequate...

The purposes of the current study are to examine whether audit risk triggers prospective rationality cognition related to how decision aid reliance could be used as a defensive strategy in a court of law should legal action arise in the future, and assess the degree to which defensibility...

In this study, we investigate whether the characteristics of clients, auditors, and the auditor-client relationship simultaneously determine audit and non-audit fees. As done in prior studies, we maintain that fees proxy for the level of service provided and follow the physical flow of...

We use a self-selection model to examine differences in audit fees between purchasers and non-purchasers of nonaudit services for a sample of 165 Michigan governmental units. Understanding the relationship between audit fees and nonaudit fees is important because nonaudit services potentially...