Journal article
The Effect of Supply Chain Knowledge Spillovers on Audit Pricing
Journal of management accounting research, v 26(1), pp 83-100
01 Mar 2014
Abstract
We present evidence on the effect of audit firms' supply chain knowledge spillover on audit pricing. Analyzing data from Audit Analytics and Compustat for the seven-year period from 2003 to 2009, we find that audit firms' supply chain knowledge has a negative effect on audit fees. Specifically, an audit firm with more supply chain knowledge charges lower audit fees to its clients when the firm also audits its clients' major buyers. In addition, we find that the fee discount is greater when the audit firm possesses major buyer-related supply chain knowledge at the office level compared to the national level. Our findings are consistent, albeit weaker, to an expanded sample of companies that voluntarily disclose their major buyers.
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Details
- Title
- The Effect of Supply Chain Knowledge Spillovers on Audit Pricing
- Creators
- Jengfang Chen - National Cheng Kung UniversityHsihui Chang - Drexel UniversityHsin-Chi Chen - I-Shou UniversitySungsoo Kim - Rutgers, The State University of New Jersey
- Publication Details
- Journal of management accounting research, v 26(1), pp 83-100
- Publisher
- Amer Accounting Assoc
- Number of pages
- 18
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Accounting
- Web of Science ID
- WOS:000216395300004
- Scopus ID
- 2-s2.0-84904110398
- Other Identifier
- 991019169684904721
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- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Business, Finance