Pricing of Risky Initial Audit Engagements
Pricing of Risky Initial Audit Engagements
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DOI：
10.2308/ajpt-50523
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发表时间：
2013-05
影响因子：
2.8
通讯作者：
John A. Elliott;Aloke Ghosh;Elisabeth Peltier
中科院分区：
文献类型：
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作者：
John A. Elliott;Aloke Ghosh;Elisabeth Peltier
总结：我们重新审视审计费用和风险的初始业务之间的关联，通过开发一个事前客户风险度量，是基于审计师变更8-K文件。我们专注于8-K审计师变更文件中披露的供应商-客户分歧和其他可报告事件（重述、管理诚信、范围限制、非法行为、重新审计）。我们发现，审计费用显着更高的客户报告分歧和其他可报告的事件，在他们的8-K审计师变更申报的第一年的约定。然而，费用溢价仅归因于四大审计师。虽然当客户有分歧或其他可报告的事件时，四大收取45%的费用，但与非四大客户相关的费用溢价并不存在。更重要的是，四大前任审计师在客户出现问题时会在审计师更换之前增加费用。四大继任审计师继续收取显着更高的费用，至少三年后，adve…
SUMMARY: We reexamine the association between audit fees and risky initial engagements by developing an ex ante client-risk metric that is based on auditor change 8-K filings. We concentrate on auditor-client disagreements and other reportable events (restatement, management integrity, scope limitations, illegal acts, reaudits) disclosed in the 8-K auditor change filings. We find that audit fees are significantly higher for clients reporting disagreements and other reportable events in their 8-K auditor change filings for the initial year of engagement. However, the fee premium is only attributable to Big 4 auditors. While the Big 4 charge 45 percent higher fees when clients have disagreements or other reportable events, there is no such fee premium associated with non-Big 4 clients. More importantly, Big 4 predecessor auditors increase fees prior to the auditor switch as clients develop problems. Big 4 successor auditors continue to charge significantly higher fees for at least three years following adve...