In this study, we examine the effect of lenders' certification for pricing of auditing services for the borrowers. We find that loan initiation is associated with significant reduction in auditing fees. The decrease in auditing fees is more pronounced for non-syndicated loans and when the...

The 1991 amendment to the auditor appointment requirement of Section 86 of the Ontario Municipal Act removes certain barriers to entry into the Ontario municipal audit market. The purpose of this study is to provide evidence that the amendment has enhanced competition in this market. The results...