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Audit Premium, Brand Name Reputation, and Industrial Specialist:An Empirical Study on Non-Profit Organizations in Taiwan
Yung - Yu Lai,
The Overseas Chinese Institute of Technology
Chiaju Crystal Kuo, Mingdao University
Fu - Hsing Chang, National Yunlin University of Science & Technology
ABSTRACT. This study examines the auditor brand name reputation premium and industry specialist as for private universities and colleges in Taiwan. By excluding industry specialist Big 4, a comparable result is found to be consistent with our hypothesis H1. It shows that the auditor brand name reputation premium exists between non-specialist Big 4 and non-Big 4 while non-specialist Big 4 is defined as audit firm has its audit fees of that industry lesser than 15 percent. As auditing is a high specialization industry, an increase in audit fees charged by non-specialist Big 4 is expected naturally greater than those of non-Big 4. In addition, the results of the regression model revealed that specialist Big 4 have higher audit fees than those of non-Big 4. In sum, we could conclude that differences in audit fee charges may attribute to fee premium for specialist Big 4, and so provide additional evidences to sustain auditor brand name reputation premium and industry specialist effects.
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