Audit Fees and Market Segmentation - Further Evidence on How Client Size Matters within the Context of Audit Fee Models
13 Pages Posted: 28 Jun 2004
Abstract
The purpose of this paper is to examine the audit fee premium to the Big 6 brand in the small and large client segments of the market for audit services. We use a sample of Australian fee data for the five-year period 1995 to 1999. We find evidence of price premiums to Big 6 auditors in the small client segment. We do not find evidence of fee premiums in the large client segment. We also present evidence that audit fees are not linearly related to client size as is typically assumed in audit fee models.
Keywords: Audit fees, audit market
JEL Classification: M49
Suggested Citation: Suggested Citation
Elizabeth Carson (Contact Author)
University of New South Wales ( email )
Sydney, NSW 2052
Australia
+612 9385 5822 (Phone)
+612 9385 5925 (Fax)
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Audit Fees and Market Segmentation - Further Evidence on How Client Size Matters within the Context of Audit Fee Models
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