Abstract
This paper investigates whether the downward pressure on audit fees during crisis affects the audit fee structure. The empirical results reveal the following: First, audit fees dropped significantly during the financial crisis period. Second, auditors respond differently to small clients and risky clients when facing downward pressure on audit fees. Finally, the above mentioned findings are more pronounced when the client is under high pressure to reduce expenses. Collectively, the above results provide useful insights into how auditors behave when they are under pressure to reduce audit fees.
Original language | English |
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Pages (from-to) | 127-144 |
Number of pages | 18 |
Journal | Asia-Pacific Journal of Accounting and Economics |
Volume | 24 |
Issue number | 1-2 |
DOIs | |
Publication status | Published - 3 Apr 2017 |
Scopus Subject Areas
- Accounting
- Finance
- Economics and Econometrics
User-Defined Keywords
- Audit fee
- audit risk
- fee pressure
- financial crisis