Book
The Effects of Financial Restatements on Audit Fees of Non-Restating Office-Level Clients
SSRN
2011
Abstract
This study draws on both audit quality and trust theories to examine the effects of financial restatements on the auditor-client trust relationship, as evidenced by changes in audit fees of the auditor's other non-restating office-level clients in the year following the restatement announcement. We find that trustor firms (i.e., non-restating firms with the same auditor [trustee] as restatement firms) pay significantly lower audit fees to the auditors especially when the auditors are one of the Big N firms. We also find a smaller drop in audit fees for firms in which the auditors' tenure with the client is longer, consistent with the concept of benevolence in trust theory
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Details
- Title
- The Effects of Financial Restatements on Audit Fees of Non-Restating Office-Level Clients
- Creators
- Hiu Lam ChoyFerdinand A Gul
- Publisher
- SSRN
- Number of pages
- 1 Online-Ressource
- Resource Type
- Book
- Language
- English
- Academic Unit
- Accounting
- Identifiers
- 991020537771204721