Audit fees and auditor dismissals in the sarbanes-oxley era

Accounting Horizons

Volumn 21, Issue 4, 2007, Pages 371-386

  Ettredge, Michael L ^a   Li, Chan ^b   Scholz, Susan ^a  

^a UNIVERSITY OF KANSAS   (United States)

^b UNIVERSITY OF PITTSBURGH   (United States)

Author keywords

Audit fees; Auditor dismissal; Internal control weakness; SOX act of 2002

Indexed keywords

EID: 41849141994     PISSN: 08887993     EISSN: 15587975     Source Type: Journal    
DOI: 10.2308/acch.2007.21.4.371     Document Type: Article

References (36)

1. Agrawal, A., and S. Chadha. 2005. Corporate governance and accounting scandals. The Journal of Law and Economics 48 (2): 371-406.
2. Asthana, S., S. Balsam, and S. Kim. 2004. The effect of Enron, Andersen, and Sarbanes-Oxley on the market for audit services. Working paper, Temple University. Available at: http://ssrn.com /abstract=560963.
3. Carcello, J., and T. Neal. 2003. Audit, committee characteristics and auditor dismissals following "new" going-concern reports. The Accounting Review 78 (1): 95-117.
4. Cassell, C., G. Giroux, L. A. Myers, and T. C. Omer. 2006. Audit firms' client portfolio decisions in the face of increased regulation and constrained resources. Working paper, Texas A&M University. Available at: http://ssrn.com/abstract=952536.
5. Craswell, A. T., J. R. Francis, and S. L. Taylor. 1995. Auditor brand name reputation and industry specializations. Journal of Accounting and Economics 20 (3): 297-322.
6. DeAngelo, L. E. 1981. Auditor size and audit quality. Journal of Accounting and Economics 3 (3): 183-199.
7. DeFond, M. L. 1992. The association between changes in client firm agency costs and auditor switching. Auditing: A Journal of Practice & Theory 11 (1): 16-32.
8. _, and K. R. Subramanyam. 1998. Auditor changes and discretionary accruals. Journal of Accounting and Economics 25 (1): 35-67.
9. _, J. R. Francis, and T. J. Wong. 2000. Auditor industry specialization and market segmentation: Evidence from Hong Kong. Auditing: A Journal of Practice & Theory 19 (1): 49-66.
10. Ettredge, M., and R. Greenberg. 1990. Determinants of fee cutting on initial audit engagements. Journal of Accounting Research 28 (1): 198-210.
11. _, Heintz, C. Li, and S. Scholz. 2007. Auditor realignments accompanying implementation of SOX 404 reporting requirements. Working paper, University of Kansas. Available at: http: //ssrn.com/abstract=874836.
12. Francis, J. R. 1984. The effect of audit firm size on audit prices: A study of the Australian market. Journal of Accounting and Economics 6 (2): 133-151.
13. _, and E. R. Wilson, 1988. Auditor changes: A joint, test of theories relating to agency costs and auditor differentiation. The Accounting Review 63 (4): 663-682.
14. _, and D. Wang. 2005. Impact of SECs disclosure requirement on subsequent period fees and implications for market efficiency. Auditing: A Journal of Practice and Theory 24 (Supplement): 145-160.
15. General Accounting Office. 2003. Public Accounting Firms: Mandated Study on Consolidation and Competition. Washington, D.C.: Government Printing Office.
16. Griffin, P. A., and D. H. Lont, 2005. The effects of auditor dismissals and resignations on audit fees: Evidence based on SEC disclosures under Sarbanes-Oxley. Working paper, University of California, Davis. Available at: http://ssrn.com/abstract=669682.
17. _. 2007. An analysis of audit fees following the passage of Sarbanes-Oxley. Asia-Pacific Journal of Accounting and Economics 14 (2): 161-192.
18. Gullapalli, D. 2004. Grasping "internal controls." Wall Street Journal (November 3).
19. Hay, D., C. R. Knechel, and N. Wong. 2006. Audit fees: A meta-analysis of the effect of supply and demand attributes. Contemporary Accounting Research 23 (1): 141-191.
20. Hosmer, D., and S. Lemeshow. 2000. Applied Logistic Regression. New York, NY: John Wiley & Sons.
21. Ireland, J. C., and C. S. Lennox. 2002. The large audit firm fee premium: A case of selectivity bias? Journal of Accounting, Auditing and Finance 17 (1): 73-91.
22. Johnson, W. B., and T. Lys. 1990. The market for audit, services: Evidence from voluntary auditor changes. Journal of Accounting and Economics 12 (1-3): 281-308.
23. Krishnan, J., and J. Krishnan. 1997. Litigation risk and auditor resignations. The Accounting Review 72 (4): 539-561.
24. Kohlbeck, M., B. Mayhew, P. Murphy, and M. S. Wilkins. 2006. Competition for Andersen's clients. Working paper, University of Wisconsin-Madison. Available at: http://ssrn.com/abstract= 900130.
25. Landsman, W. R., K. K. Nelson, and B. R. Rountree. 2005. An empirical analysis of Big N auditor switches. Working paper, University of North Carolina.
26. Menon, K., and D. Williams. 2001, Long-term trends in audit fees. Auditing: A Journal of Practice & Theory 20(1): 115-136.
27. PricewaterhouseCoopers. 2005. 2004 Litigation study. CFODirect Network (June 28).
28. _. 2006. DataLine 2006-13: Highlights of the 2006 SEC/PCAOB roundtable on second-year experiences with Section 404. CFODirect Network (May 12).
29. Rama, D. V., and W. J. Read. 2006. Resignations by the Big 4 and the market for audit services. Accounting Horizons 20 (2): 97-109.
30. Sankaraguruswamy, S., and J. S. Whisenant, 2004. An empirical analysis of voluntarily supplied client-auditor realignment reasons. Auditing: A Journal of Practice & Theory 23 (1): 107-121.
31. Simon, D. T., and. J. R. Francis. 1988. The effects of auditor change on audit fees: Tests of price cutting and price recovery. The Accounting Review 63 (2): 255-269.
32. Shu, S. Z. 2000. Auditor resignations: Clientele effects and legal liability. Journal of Accounting and Economics 29 (2): 173-206.
33. Solomon, D. 2005. At what price? Wall Street Journal (October 17).
34. Walker, P. L., and J. R. Casterella. 2000. The role of auditee profitability in pricing new audit engagements. Auditing: A Journal of Practice & Theory 19 (1): 157-167.
35. Whitehouse, T. 2005. Audit pricing played a part in increased 2004 audit, costs. Compliance Week (May 17).
36. Wolk, C. M., S. E. Michelson, and C. E. Wootton. 2001. Auditor concentration and market shares in the U.S.: 1988-1999 a descriptive note. British Accounting Review 33 (2): 157-174.