|
Auditor Fees and Fraud Firms
Ariel Markelevich, Long Island University - Cw Post Campus
Rebecca L. Rosner, Long Island University - Cw Post Campus
ABSTRACT. The issue of whether fees for non-audit services (NAS) affect auditor independence has been extensively debated by regulators, researchers, and others. The new SEC requirements relative to NAS fees are based on the argument that a combination of high NAS fees and lower audit fees can reduce auditor independence and hence audit quality. We examine the relationship between various auditor fee variables and a sample of firms sanctioned by the SEC for fraudulent financial reporting relative to that of control firms. Our results show a consistently significant positive relationship for auditor fee variables and fraud firms relative to controls, using several empirical tests and several variations of auditor fee variables.
Full-Text is no longer available online. Please contact the author(s) for more information about this manuscript.
Back to Session Listing
|