We examine the association between CEOs' political ideologies, proxied by CEOs' federal-level personal political contributions to the Republican Party relative to the Democratic Party, and audit fees of the firms that the CEOs manage. We hypothesize and find that firms run by CEOs whose...

Although prior literature has documented a positive association between business risk and audit fees, it remains unclear whether, in addition to expending greater audit effort on riskier clients, auditors also charge a risk premium. This is an important issue because a risk premium is a...

This study investigates whether local gambling norms are associated with audit pricing. Using a religion-based measure of social gambling preferences, we find robust evidence that public firms located in U.S. counties with more liberal gambling norms exhibit higher levels of audit fees. This...

We examine why U.S.-listed foreign companies choose to have a U.S.-based (rather than home country-based) Big N firm as their principal auditor for SEC reporting purposes and the effects of that choice for audit fees and earnings quality. We find that the likelihood of the Big N principal...

Prior research has intensively debated whether abnormal audit fees purely indicate audit effort or client-auditor economic bonding (Francis 2011). However, this empirical debate is mostly based on the findings of the associations between audit fees and accrual-based earnings management. Unlike...

PurposeThis paper focuses on bank audit committees and examines whether audit committee members who are former auditors are associated with the acquisition of audit and non-audit services from their former employers.Design/methodology/approachWe empirically examine a sample of large banks that...

In this paper, we examine how CEO succession and succession planning affect perceptions of financial reporting risk among stakeholders who are responsible for and oversee firms' financial reporting (e.g., auditors, management, and audit committees). Management succession introduces uncertainty...

Auditing literature lacks an integrated vision for interactions among business Risk, governance mechanisms, audit fees, and the content of auditor report. The objective of this study is to construct a theoretical framework to interpret the interactions among the four elements. In addition, the...

SUMMARY: We examine whether bank auditor effort, proxied by audit fees, is related to asset securitization risks (ASR) and whether the incremental auditor effort attributed to ASR is related to audit quality. Our sample period encompasses the Global Financial Crisis (GFC) and the introduction of...

Despite the huge audit pricing literature, there is a dearth of evidence on the temporal dynamics of audit fee adjustments and the persistence of audit prices. Based on a sample of 76,867 panel observations for a sample of UK listed and unlisted companies audited by the big 4 over the period...