Does practitioner research help auditors to provide higher audit quality and generate higher audit fees?
Posted: 18 Mar 2016 Last revised: 26 Aug 2021
Date Written: January 31, 2021
This paper investigates whether auditors engaging in practitioner research by writing professional articles and books subsequently provide higher audit quality and generate higher audit fees. Based on theories of constructivist learning and evidence-based management, we argue that engaging in practitioner research helps auditors to acquire expertise relevant for performing the audit. Further, we predict that this engagement also contributes to the development of auditors’ reputation, enabling the auditor to negotiate higher audit fees. We use the German setting for our empirical study as it is common for German auditors to write professional articles and books for historical reasons. Our results are consistent with our expectations. They remain robust when controlling for innate lead auditor abilities and the match between the lead auditor and the client.
Keywords: auditor expertise; audit quality; restatements; audit fee
JEL Classification: M40, M42
Suggested Citation: Suggested Citation