A Comparative Study of Pricing of Audit Services in Emerging Economies

14 Pages Posted: 15 Sep 2005

See all articles by Kamran Ahmed

Kamran Ahmed

La Trobe University - School of Accounting

Mahendra K. Goyal

Monash University - Department of Accounting

Abstract

This paper contributes to the under-researched issue of how auditors charge for their services by empirically examining audit fee determinants in three emerging economies within South Asia. Using data from 118 Bangladeshi firms, 219 Indian firms and 229 Pakistani firms for the year 1998, the results show that size of the reporting entity, multinational affiliation and size of the audit firms are the most important determinants across the three countries. No significant relations were found between audit fees and the firm's financial condition and auditee complexity. The results of this study provide useful insights into the role of contracting cost variables and auditors' billing practices in comparative and emerging economies in general, and South Asia in particular.

JEL Classification: L84, M47, M49

Suggested Citation

Ahmed, Kamran and Goyal, Mahendra K., A Comparative Study of Pricing of Audit Services in Emerging Economies. International Journal of Auditing, Vol. 9, No. 2, pp. 103-116, July 2005. Available at SSRN: https://ssrn.com/abstract=788997

Kamran Ahmed

La Trobe University - School of Accounting ( email )

Melbourne
Victoria, 3086
Australia
61394791125 (Phone)
61394792356 (Fax)

Mahendra K. Goyal (Contact Author)

Monash University - Department of Accounting ( email )

Building 11E
Clayton, Victoria 3800
Australia

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