What Drives Differences in Audit Pricing around the World?

65 Pages Posted: 17 Dec 2019

See all articles by Brigitte Eierle

Brigitte Eierle

University of Bamberg

Sven Hartlieb

University of Bamberg

David Hay

University of Auckland - Business School

Lasse Niemi

Aalto University - School of Business

Hannu Ojala

Tampere University; Aalto University - School of Business

Date Written: December 2019

Abstract

Audit pricing, along with its determinants, forms one of the most extensively investigated areas in audit research. Recent years have seen increasing interest in the macro-level determinants of audit fees related to differences in audit environments around the world. To answer the resultant call for further investigation, we firstly provide a comprehensive synthesis of macro-level determinants that have been considered in empirical cross-country auditing research. Secondly, we provide evidence that audit prices vary substantially across different institutional settings. Thirdly, employing the comprehensive set of country variables identified in our literature review, we examine the relative importance of country factors in accounting for these cross-country differences. We find that economic and regulatory characteristics contribute most to explaining such variations, while the results also demonstrate the sociological environment’s significance. In times when auditing is becoming more globalized, our study should be of interest to a wide range of readers including researchers, practitioners and regulators.

Keywords: auditing, audit fees, literature review, cross-country research

JEL Classification: M40, M42

Suggested Citation

Eierle, Brigitte and Hartlieb, Sven and Hay, David and Niemi, Lasse and Ojala, Hannu, What Drives Differences in Audit Pricing around the World? (December 2019). Available at SSRN: https://ssrn.com/abstract=3494511 or http://dx.doi.org/10.2139/ssrn.3494511

Brigitte Eierle

University of Bamberg ( email )

Feldkirchenstraße 21
Bamberg, 96052
Germany
00499518632545 (Phone)

HOME PAGE: http://www.uni-bamberg.de/bwl-irwp/home/

Sven Hartlieb (Contact Author)

University of Bamberg ( email )

Kirschaeckerstrasse 39
Bamberg, 96045
Germany

David Hay

University of Auckland - Business School ( email )

12 Grafton Rd
Auckland, 1010
New Zealand

Lasse Niemi

Aalto University - School of Business ( email )

P.O. Box 21210
Helsinki, 00101
Finland

Hannu Ojala

Tampere University ( email )

Tampere, FIN-33101
Finland

Aalto University - School of Business ( email )

P.O. Box 21210
Helsinki, 00101
Finland

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