Audit Fees: A Meta-Analysis of the Effect of Supply and Demand Attributes

53 Pages Posted: 6 Mar 2004

See all articles by David Hay

David Hay

University of Auckland - Business School

W. Robert Knechel

University of Florida - Fisher School of Accounting

Norman Wong

University of Auckland Business School

Date Written: February 2004

Abstract

We evaluate and summarize the large body of audit fee research, and use meta-analysis to test the combined effect of the most commonly used independent variables. We find that, while many independent variables have very consistent results, there are also several where there is no clear pattern to the results and others where significant results have been found only in certain periods or particular countries. These variables include leverage and the audit opinion. The perspective provided by the meta-analysis allows us to reconsider the anomalies, mixed results and gaps in audit fee research. We suggest that research into the effects on audit fees of company ownership, internal control, governance, auditor quality, and non-audit services is necessary.

Keywords: Auditing, audit fees

JEL Classification: M49, G34

Suggested Citation

Hay, David and Knechel, W. Robert and Wong, Norman, Audit Fees: A Meta-Analysis of the Effect of Supply and Demand Attributes (February 2004). Available at SSRN: https://ssrn.com/abstract=512642 or http://dx.doi.org/10.2139/ssrn.512642

David Hay (Contact Author)

University of Auckland - Business School ( email )

12 Grafton Rd
Auckland, 1010
New Zealand

W. Robert Knechel

University of Florida - Fisher School of Accounting ( email )

Warrington College of Business
PO Box 117166
Gainesville, FL 32611-7166
United States

Norman Wong

University of Auckland Business School ( email )

Private Bag 92019
Auckland, 1001
New Zealand
(64 9) 3737599 Ext. 87098 (Phone)
(64 9) 373 7406 (Fax)

HOME PAGE: http://www.business.auckland.ac.nz

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