An Empirical Investigation of the Market for 'Single Audit' Services
Posted: 23 Jul 2014
Date Written: Winter 1992
Audits conducted under the 1984 Single Audit Act go beyond the traditional financial statement audit by placing substantial additional emphasis on the review and evaluation of internal controls and testing of compliance with laws and regulations. The General Accounting Office (GAO), congressional committees, and the American Institute of CPAs (AICPA) have expressed concern about the possible effects of the single audit on audit fees, the quality of single audits, and the effects of alleged low balling. This article provides evidence bearing on these issues, based on data for a national sample of cities.
Keywords: Single audit act, internal controls, government audits
JEL Classification: M41
Suggested Citation: Suggested Citation