Audit and Non-Audit Fees in Germany – The Impact of Audit Market Characteristics

Schmalenbach Business Review, Vol. 64, October 2012, pp. 281-307

27 Pages Posted: 1 Dec 2012

See all articles by Annette G. Köhler

Annette G. Köhler

Handelshochschule Leipzig (HHL) - Leipzig Graduate School of Management

Nicole V.S. Ratzinger-Sakel

University of Hamburg

Date Written: 2012

Abstract

We investigate the impact of three German audit market characteristics on audit and non-audit fees for the years 2005-2007. We find no relation between audit and non-audit fees, which suggests that audit and non-audit fee determination in Germany does not indicate any particular impairment of auditor independence. Further, we find that fee-cutting for initial audit engagements depends significantly on client size. We find no evidence of network-related fee reporting bias due to the ambiguous phrasing of German fee disclosure requirements, which implies that German fee data are internationally comparable.

Keywords: Auditor Change, Audit Fees, Auditor Independence, Audit Market Segment, Non-Audit Fees

JEL Classification: C30, L11, M42

Suggested Citation

Köhler, Annette G. and Ratzinger-Sakel, Nicole V.S., Audit and Non-Audit Fees in Germany – The Impact of Audit Market Characteristics (2012). Schmalenbach Business Review, Vol. 64, October 2012, pp. 281-307. Available at SSRN: https://ssrn.com/abstract=2183195

Annette G. Köhler

Handelshochschule Leipzig (HHL) - Leipzig Graduate School of Management ( email )

Jahnallee 59
Leipzig, D-04109
Germany

Nicole V.S. Ratzinger-Sakel (Contact Author)

University of Hamburg ( email )

Allende-Platz 1
Hamburg, 20146
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
284
Abstract Views
1,170
rank
112,853
PlumX Metrics