Abstract
In the audit literature, it was postulated that audit firms are differentiated due to their quality and, thus, the fees charged are a function of quality. We hypothesize that this may lead to audit firm specialization in different amounts of auditing, leading to a differential audit fee structure. This hypothesis is empirically tested by using a very large sample of audit fees paid to then Big Eight auditors. The results are consistent with the hypothesis in that three Big Eight auditors are observed to charge significantly different fees when compared with the other firms.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 339-348 |
| Number of pages | 10 |
| Journal | Journal of Economics & Management Strategy |
| Volume | 2 |
| Issue number | 3 |
| DOIs | |
| State | Published - Sep 1993 |
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Economics and Econometrics
- Strategy and Management
- Management of Technology and Innovation
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Balachandran, B. V., & Simon, D. (1993). Audit Services and Fees of Large Accounting Firms. Journal of Economics & Management Strategy, 2(3), 339-348. https://doi.org/10.1111/j.1430-9134.1993.00339.x