The Influence of Accounting Comparability on the Audit Fees

DOI

10.2991/msmi-16.2016.72How to use a DOI?

Keywords

Accounting Comparability; Audit Fees; Audit Risk; Auditability

Abstract

Based on the Simunic model and the surplus-earnings regression model (De Franco et al.), we build a research model according to the relationships between variables of the audit input, risk premium and accounting comparability. The result shows that the accounting comparability has a huge effect on audit fees. Companies having a high level of accounting comparability collect low audit fees, vice versa. Further research shows that, the accounting comparability influences the audit fees through two ways. One is to improve the efficiency of obtaining external information and enhance the auditability on the financial statement, and then decrease the input on the audit by reducing the human capital investment. The other is to reduce the audit risk so as to decrease the risk premium required by accountant. The research also shows that the first influence way is more remarkable comparing to the second way.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Jin-Jian Yang
AU  - Zi-Xuan Zhou
AU  - Yi-Wen Wang
PY  - 2016/08
DA  - 2016/08
TI  - The Influence of Accounting Comparability on the Audit Fees
BT  - Proceedings of the 2016 International Conference on Management Science and Management Innovation
PB  - Atlantis Press
SP  - 308
EP  - 313
SN  - 2352-5428
UR  - https://doi.org/10.2991/msmi-16.2016.72
DO  - 10.2991/msmi-16.2016.72
ID  - Yang2016/08
ER  -