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RAAS 2023/12
Vol.13 No.2:
75-114
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The Impact of Auditor Membership in Association and Alliance on Audit Fees
Tzu-Ching Weng1, Hsin-Yi Chi2*, and Chia-Lin Wu3
1Department of Accounting, Feng Chia University
2Department of Accounting, National Chung Hsing University
3Deloitte Touche Tohmatsu Limited
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Abstract:
The purpose of this study is to explore the impact of individual auditor connection of association and alliance on audit fees from 2016 to 2019 in Taiwan listed companies. This study further considers the impact on non-big 4 audit firms. The results show that non-big 4 individual auditors, who participate in more social network organizations, will earn more audit fees. Additionally, as the sensitivity tests such as the importance of auditors’ positions, controlling endogeneity, adopting difference-in-difference and the effect on non-audit fees, we also find that while non-big 4 auditors participating in more social network connections can raise their audit fees, their association and alliance connections can enhance their non-audit fees.
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Keywords: Audit fees; Accountant association and alliance; Knowledge sharing
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Corresponding author
; e-mail: hychi@dragon.nchu.edu.tw
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©
2023
Review of Accounting and Auditing Studies, ISSN 2221-9374
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