Work

International accounting network memberships and audit fees: Evidence from China

Year: 2024

Type: article

Abstract: This paper investigates the international accounting network memberships' impact on audit fees. We find that, firstly, the audit fees charged by the member audit firms are significantly higher; secondly, if the revenue, ranking or audit and accounting business share of the international network the audit firm join is higher, the charge is also higher. Additional results show that economic policy uncertainty will intensify this positive relationship, and member audit firms charge higher fees by improving their overseas expertise. We also find that international network memberships will reduce abnormal audit fees, and improve the quality of financial reports.

Source: PLoS ONE

DOI: 10.1371/journal.pone.0296304

Authors: Xuemei Xiong, Ruoting Zheng, YanJian Liu, Xuanhao Huang

Institutions: Minjiang University, Fuzhou University

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $2,290

Funders: Natural Science Foundation of Fujian Province, Minjiang University