Impact of audit quality on audit fees pre and post financial crises

From the 1980’s research in audit service market has grown considerably. In line with that policymakers and regulators have been concerned about the role and value of external auditors and their independence. Using a sample of UK’s large companies over the period of 2006-2011 this study investigates...

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Main Author: Bhawan, Suraj Vijaykumar
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2013
Online Access:https://eprints.nottingham.ac.uk/26464/
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author Bhawan, Suraj Vijaykumar
author_facet Bhawan, Suraj Vijaykumar
author_sort Bhawan, Suraj Vijaykumar
building Nottingham Research Data Repository
collection Online Access
description From the 1980’s research in audit service market has grown considerably. In line with that policymakers and regulators have been concerned about the role and value of external auditors and their independence. Using a sample of UK’s large companies over the period of 2006-2011 this study investigates the impact of audit quality on audit fees, whereby the proxy of audit quality is the model proposed by Ball and Shivakumar (2006). The objective was to compare the impact of audit quality on audit fees between the pre-financial crises period, which was classified as 2006-2008, and the post-financial crises period, which was classified as 2009-2011. Consistent with previous research this study found mixed results, in the pre-financial crises period the audit quality was a significant variable in explaining variations in audit fees however in the post financial period it failed to explain variations in audit fees. The by-product of the study was providing additional evidence on the determinants of audit fees. Size of auditee, size of auditor and low-balling have been found to be significant variables in explaining audit fees. In carrying out the study attention was given to the regression method used as the data format was panel. Pooled, fixed effects and random effects were all considered before drawing any conclusions from the analysis.
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spelling nottingham-264642017-10-19T13:27:31Z https://eprints.nottingham.ac.uk/26464/ Impact of audit quality on audit fees pre and post financial crises Bhawan, Suraj Vijaykumar From the 1980’s research in audit service market has grown considerably. In line with that policymakers and regulators have been concerned about the role and value of external auditors and their independence. Using a sample of UK’s large companies over the period of 2006-2011 this study investigates the impact of audit quality on audit fees, whereby the proxy of audit quality is the model proposed by Ball and Shivakumar (2006). The objective was to compare the impact of audit quality on audit fees between the pre-financial crises period, which was classified as 2006-2008, and the post-financial crises period, which was classified as 2009-2011. Consistent with previous research this study found mixed results, in the pre-financial crises period the audit quality was a significant variable in explaining variations in audit fees however in the post financial period it failed to explain variations in audit fees. The by-product of the study was providing additional evidence on the determinants of audit fees. Size of auditee, size of auditor and low-balling have been found to be significant variables in explaining audit fees. In carrying out the study attention was given to the regression method used as the data format was panel. Pooled, fixed effects and random effects were all considered before drawing any conclusions from the analysis. 2013 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/26464/1/Impact_of_audit_quality_on_audit_fees_pre_and_post_financial_crises.pdf Bhawan, Suraj Vijaykumar (2013) Impact of audit quality on audit fees pre and post financial crises. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Bhawan, Suraj Vijaykumar
Impact of audit quality on audit fees pre and post financial crises
title Impact of audit quality on audit fees pre and post financial crises
title_full Impact of audit quality on audit fees pre and post financial crises
title_fullStr Impact of audit quality on audit fees pre and post financial crises
title_full_unstemmed Impact of audit quality on audit fees pre and post financial crises
title_short Impact of audit quality on audit fees pre and post financial crises
title_sort impact of audit quality on audit fees pre and post financial crises
url https://eprints.nottingham.ac.uk/26464/