Note on audit fee premiums to client size and industry specialization

Accounting and Finance

Volumn 47, Issue 3, 2007, Pages 423-446

  Carson, Elizabeth ^a   Fargher, Neil ^b  

^a UNIVERSITY OF NEW SOUTH WALES   (Australia)

^b MACQUARIE UNIVERSITY   (Australia)

Author keywords

Audit fees; Auditing; Industry specialization

Indexed keywords

EID: 34548620434     PISSN: 08105391     EISSN: 1467629X     Source Type: Journal    
DOI: 10.1111/j.1467-629X.2007.00213.x     Document Type: Article

References (27)

1. Bell, T. B., W. R. Knechel J. J. Willingham, 1994, An exploratory analysis of the determinants of audit engagement resource allocations, Proceedings of the Deloitte & Touche / University of Kansas Symposium on Auditing Problems, Auditing Symposium XII, 49 67.
2. Casterella, J. R., J. R. Francis, B. L. Lewis P. L. Walker, 2004, Auditor industry specialisation, client bargaining power and audit pricing, Auditing: A Journal of Practice & Theory 23, 123 140.
3. Chen, Y., R. Moroney K. Houghton, 2005, Audit committee composition and the use of an industry specialist audit firm, Accounting and Finance 45, 217 239.
4. Chung, H. S. Kallapur, 2003, Client importance, nonaudit services and abnormal accruals, Accounting Review 78, 931 955.
5. Craswell, A. J. Francis, 1999, Pricing initial audit engagements: a test of competing theories, Accounting Review 74, 201 216.
6. Craswell, A. S. Taylor, 1991, The market structure of auditing in Australia: the role of industry specialization, Research in Accounting Regulation 5, 55 77.
7. Craswell, A., J. Francis S. Taylor, 1995, Auditor brand name reputations and industry specialisations, Journal of Accounting and Economics 20, 297 322.
8. DeFond, M. L., J. R. Francis T. J. Wong, 2000, Auditor industry specialisation and market segmentation: evidence from Hong Kong, Auditing: A Journal of Practice & Theory 19, 49 66.
9. Easton, P. D. G. A. Sommers, 2003, Scale and the scale effect in market-based accounting research, Journal of Business, Finance & Accounting 30, 25 55.
10. Ferguson, A., J. R. Francis D. Stokes, 2003, The effects of firm-wide and office-level industry expertise on audit pricing, Accounting Review 78, 429 448.
11. Ferguson, A., J. R. Francis D. Stokes, 2006, What matters in audit pricing: industry specialization or overall market leadership? Accounting and Finance 46, 97 106.
12. Ferguson, A. D. Stokes, 2002, Brand name audit pricing, industry specialisation, and leadership premiums post-Big 8 and Big 6 mergers, Contemporary Accounting Research 19, 77 100.
13. Fields, L. P., D. R. Fraser M. S. Wilkins, 2004, An investigation of the pricing of audit services for financial institutions, Journal of Accounting and Public Policy 23, 53 77.
14. Francis, J., 1984, The effect of audit firm size on audit prices, Journal of Accounting and Economics 6, 133 151.
15. Francis, J. D. Simon, 1987, A test of audit pricing in the small-client segment of the U.S. audit market, Accounting Review 62, 145 157.
16. Francis, J. D. Stokes, 1986, Audit prices, product differentiation, and scale economies: further evidence from the Australian market, Journal of Accounting Research 24, 383 393.
17. Francis, J., K. Reichelt D. Wang, 2005, The pricing of national and city-specific reputations for industry expertise in the U.S. audit market, Accounting Review 80, 113 136.
18. Gramling, A. D. Stone, 2001, Audit firm industry expertise: a review and synthesis of the archival literature, Journal of Accounting Literature 20, 1 27.
19. Hays Accounting Personnel Salary Survey, 1998, 1999, 2004, Hays Accounting Services [online; cited 1 December 2005]. Available: http://www.hays.com.au/salary/.
20. JPMorgan, Listing of American Depositary Receipt Issuers, JPMorgan, New York [online; cited 12 May 2006]. Available: http://www.adr.com.
21. Mayhew, B. W. M. S. Wilkins, 2003, Audit firm industry specialisation as a differentiation strategy: evidence from fees charged to firms going public, Auditing: A Journal of Practice & Theory 22, 33 52.
22. Palmrose, Z., 1986, Audit fees and auditor size: further evidence, Journal of Accounting Research 24, 97 110.
23. Reynolds, J. K. J. R. Francis, 2001, Does size matter? The influence of large clients on office-level auditor reporting decisions, Journal of Accounting and Economics 30, 375 400.
24. Sarbanes-Oxley Act, 2002, Corporate Responsibility, Public Law 107-204 (107th Congress of the United States, Washington, DC).
25. Simunic, D., 1980, The pricing of audit services: theory and evidence, Journal of Accounting Research 18, 27 35.
26. Sullivan, M. W., 2000, The Effect of Big Eight Accounting Firm Mergers on the Market for Audit Services, working paper (US Department of Justice, Washington, DC).
27. Who Audits Australia database, 1998/1999, Faculty of Economics and Business, University of Sydney, Sydney, NSW.