Audit committees, Cadbury Code and audit fees: an empirical analysis of UK companies

Managerial Auditing Journal

Volumn 15, Issue 7, 2000, Pages 358-371

  Goddard, Andrew R ^a   Masters, Carol ^b  

^a UNIVERSITY OF SOUTHAMPTON   (United Kingdom)

^b SOUTHAMPTON SOLENT UNIVERSITY   (United Kingdom)

Author keywords

Audit committees; Auditing

Indexed keywords

EID: 84986018830     PISSN: 02686902     EISSN: None     Source Type: Journal    
DOI: 10.1108/02686900010344638     Document Type: Article

References (45)

1. Accountancy Age (1996), “Revisions improve audit monitoring’, 30 May, p. 8.
2. Accountants International Study Group (1977), “Audit Committees. Current Practices in Canada, the United Kingdom and the United States”.
3. Auditing Practices Board (1992), The Future Development of Auditing, London.
4. Auditing Practices Board (1994), The Audit Agenda, London
5. Bank of England (1988), “Composition of company boards”, Quarterly Bulletin, Vol. 28, May, pp. 242-5.
6. Brinn, T., Peel, M. and Roberts, R. (1994), “Audit fee determinants of independent and subsidiary unquoted companies in the UK – an exploratory study”, British Accounting Review, Vol. 26, pp. 101-21.
7. Butterworth, S. and Houghton, K.A. (1995), “Auditor switching and the pricing of audit services”, Journal of Business Finance and Accounting, Vol. 22 No. 3, April, pp. 323-44.
8. Cadbury, A. (Chmn) (1992), Report of the Committee of the Financial Aspects of Corporate Governance, Financial Reporting Council, London Stock Exchange, London.
9. Chan, P., Ezzamel, M. and Gwilliam, D. (1993), “Determinants of audit fees for quoted UK companies”, Journal of Business Finance & Accounting, Vol. 20 No. 6, November, pp. 765-86.
10. Collier, P.A. (1993), “Audit committees in major UK companies”, Managerial Auditing Journal, Vol. 8 No. 3, pp. 25-30.
11. Collier, P. and Gregory, A. (1996), “Audit committee effectiveness and the audit fee”, The European Accounting Review, Vol. 5 No. 2, pp. 177-98.
12. Corrin, J. (1993), “A blatant slur on executive directors’ integrity”, Accountancy, Vol. 111 No. 1196, April, pp. 81-2.
13. Ezzamel, M., Gwilliam, D.R. and Holland, K.M. (1996), “Some empirical evidence from publicly quoted UK companies on the relationship between the pricing of audit and non-audit services”, Accounting and Business Research, Vol. 27 No. 1, pp. 3-16.
14. Fama, E.F. and Jensen, M.C. (1983), “Separation of ownership and control”, Journal of Law and Economics, Vol. 26 No. 2, pp. 301-26.
15. Francis, J.R. and Stokes, D.J. (1986), “Audit prices, product differentiation and scale economies: further evidence from the Australian market”, Journal of Accounting Research, Vol. 24 No. 2 Autumn, pp. 383-93.
16. Galoo ltd (in liq) v. Bright Grahame Murray (a firm) [1995] 1 All ER 16.
17. Gerrard, I., Houghton, K. and Woodliff, D. (1994), “Audit fees: the effects of auditee, auditor and industry differences”, Managerial Auditing Journal, Vol. 9 No. 7, pp. 3-11.
18. Gist, W. (1992), “Explaining variability in external audit fees”, Accounting and Business Research, Vol. 23 No. 89, pp. 79-84.
19. Haka, S. and Chalos, P. (1990), “Evidence of agency conflict among management, auditors, and the audit committee chair”, Journal of Accounting and Public Policy, Vol. 9, pp. 271-92.
20. Hart, O. (1995), “Corporate governance: some theory and implications”, The Economic Journal, Vol. 105 (May), pp. 678-97.
21. Haskins, M.E. and Williams, D. (1988), “The association between client factors and audit fees: a comparison by country and by firm”, Accounting and Business Research, Vol. 18 No. 70, pp. 183-90.
22. Hussey, R. and Jack, A. (1994), The Finance Director and the Auditor, University of the West of England, Bristol.
23. Jaccard, J.R., Turrisi, R. and Wan, C.K. (1990), Interaction Effects in Multiple Regression, Sage Publications Inc, Newbury Park, CA.
24. Jensen, M.C. and Meckling, W.H. (1976), “Theory of the firm: managerial behaviour, agency costs and ownership structure”, Journal of Financial Economics, Vol. 3, October, pp. 305-60.
25. Jubb, C.A., Houghton, K.A. and Butterworth, S. (1996), “Audit fee determinants: the plural nature of risk”, Managerial Auditing Journal, Vol. 11 No. 3, pp. 25-40.
26. Kalbers, L.P. (1992), “An examination of the relationship between audit committees and external auditors”, The Ohio CPA Journal (USA), Vol. 51 No. 6, December, pp. 19-27.
27. Kalbers, L.P. and Fogarty, T.J. (1993), “Audit committee effectiveness: an empirical investigation of the contribution of power”, Auditing: A Journal of Practice and Theory, Vol. 12 No. 1, pp. 24-9.
28. Kaplan, S. (1985), “An examination of the effects of environment and explicit internal control on planned audit hours”, Auditing: A Journal of Practice and Theory, Autumn, pp. 12-25.
29. Knapp, M.C. (1987), “An empirical study of audit committee support for auditors involved in technical disputes with client management”, Accounting Review, Vol. 62 No. 3, pp. 578-88.
30. Menon, K. and Williams, J.D. (1994), “The use of audit committees for monitoring”, Journal of Accounting and Public Policy, Vol. 13 No. 2, Summer, pp. 121-39.
31. Monroe, G.S., Robinson, P. and Teh, S.T. (1994), “The effect of audit committees on the likelihood of receiving a qualified audit opinion”, paper presented at BAA Conference, Winchester, March.
32. Palmrose, Z.V. (1986a), “Audit fees and auditor size: further evidence”, Journal of Accounting Research, Vol. 24 No. 1, Spring, pp. 97-110.
33. Palmrose, Z.V. (1986b), “The effect of non-audit services on the pricing of audit services: further evidence”, Journal of Accounting Research, Vol. 24 No. 2, Autumn, pp. 405-11.
34. Palmrose, Z.V. (1989), “The relation of audit contract type to audit fees and hours”, The Accounting Review, Vol. 64, July, pp. 488-99.
35. Pong, C. and Whittington, G. (1994), “The determinants of audit fees: some empirical models”, Journal of Business Finance & Accounting, Vol. 21 No. 8, pp. 1071-95.
36. PriceWaterhouse (1995), Effective Corporate Governance, PriceWaterhouse, London.
37. Promotion of Non-Executive Directors (ProNed) (1987), Code of Recommended Practice on Non-executive Directors, London.
38. Reay, C. (1994), “Non-executives and the expectations gap”, Accountancy, Vol. 114 No. 1213, September, pp. 74-5.
39. Simon, D.T and Francis, J.R. (1988), “The effects of auditor changing on audit fees: tests of price cutting and price recovery”, The Accounting Review, Vol. 63, April, pp. 255-69.
40. Simunic, D.A. (1980), “The pricing of audit services: theory and evidence”, Journal of Accounting Research, Vol. 18 No. 1, Spring, pp. 161-90.
41. Simunic, D.A. (1984), “Auditing, consulting and auditor independence’, Journal of Accounting Research, Autumn, pp. 679-702.
42. (The) Times 1,000 1996 (1995), Times Books, London.
43. Wallace, W.A. (1984), “Internal auditors can cut outside CPA costs”, Harvard Business Review, March-April, pp. 16-20.
44. Wild, J.J. (1994), “Managerial accountability to shareholders: audit committees and the explanatory power of earnings for returns”, British Accounting Review, Vol. 26, pp. 353-74.
45. Woolf, E. (1997), Auditing Today, 6th ed. Prentice-Hall, Hemel Hempstead.