The Relationship between Principles-based Accounting Rules and Audit Fees
The Relationship between Principles-based Accounting Rules and Audit Fees
dc.contributor.author | Wan, Huishan | |
dc.contributor.author | Drum, Dawna | |
dc.contributor.author | Liu, Zenghui | |
dc.date.accessioned | 2022-10-20T19:39:15Z | |
dc.date.available | 2022-10-20T19:39:15Z | |
dc.date.issued | 2022 | |
dc.description.abstract | This paper examines the relations between principles-based accounting standards and audit fees. Our empirical evidence suggests auditors charge a lower fee when firms’ standards are more principles based. Further analyses indicate this fee saving is more pronounced for firms with stronger corporate governance and firms in post-SOX era. Our result is consistent with the notion that principles-based accounting standards improve earnings quality and reduce auditor’s risk-related premium. The results add to the growing body of literature examining cost/benefit of principles-based accounting standards, as well as to the literature of the determinants of audit fees. | |
dc.identifier.uri | https://hdl.handle.net/10125/103956 | |
dc.subject | principles-based accounting standards | |
dc.subject | rules-based accounting standards | |
dc.subject | auditing | |
dc.subject | audit fees | |
dc.title | The Relationship between Principles-based Accounting Rules and Audit Fees |
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