Using a novel dataset that captures public perceptions of the trustworthiness of client firms by extracting and converting social media feeds into an index, we find that auditors charge higher fees for client firms with lower trustworthiness, as client firms with higher trustworthiness are less...

This paper employs the dissolution of two major Japanese audit firms to identify voluntary and involuntary audit switching behavior and how does it affect the interaction between client bargaining power and audit pricing. Using a sample of listed Japanese companies from 2005 to 2015, we find...

We investigate the extent to which a client's innovative effort affects the level of audit effort and whether the innovative-effort efficiency can attenuate the demand for greater audit effort associated with a client's risky research-and-development (R&D) investments. We find that a client...

In India, the government introduced mandatory audit firm rotation following calls to improve audit quality and auditor independence in the wake of the Satyam accounting scandal. The absence of strong institutional mechanisms to prevent and detect audit failure in a timely manner has led the...

Both the GAO (2003, 2008) and the US Treasury (2008) have implied that the Big 4 dominated US audit market lacks competition. More recently, the PCAOB has expressed a somewhat different concern, i.e., that because audit committees may be primarily interested in negotiating a lower audit fee...

European Union adopted the Regulation (EU) No 537/2014, which in practice prohibits the joint provision of audit and most types of non-audit services (NAS). Regulators presume that NAS fees weaken auditor independence and, as a result, impair audit quality. As the evidence at the European level...

This study analyzed the relationship between firm market power and audit fee decision. Specifically, the impact of the market power measured by market share on audit fee was determined, and also the impact of the company's governance structure on the relationship between market power and audit...

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...

To understand the implications of decentralized ledger technology for financial reporting and auditing, we analyze auditor competition, audit quality, client misstatements, and regulatory policy all in a unified framework. We demonstrate how collaborative auditing using a federated blockchain...

This study tests whether an association exists between the geographic location of industry sector leaders in an auditing firm and differences in audit pricing for that same auditing firm's industry clients. Using organizational learning theory and human capital theory, we predict that the...