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RAAS 2024/06
Vol.14 No.1:
1-32
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A Comparative Analysis of Audit Fee Levels and Determinants between Taiwan and Nearby Asian Markets
Kun-Chih Chen1*, Xiang-Yu Huang1, and Yu-Hsuan Chen2
1Department of Accounting, National Taiwan University
2Deloitte Taiwan
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Abstract:
The audit fee is an important indicator of the development of the audit industry, and a disproportionately low audit fee may have a negative impact on the enhancement of the accounting profession and attraction of talent. This study finds that, after controlling for company and country-specific variables, audit fees in Taiwan are lower than in most other neighboring Asian markets in the sample. Further analysis reveals that this is mainly due to the fact that the Big 4 accounting firms in Taiwan charge significantly lower fees based on client company sizes compared to other markets. The study also finds that, among these seven Asian markets, excluding Japan, audit fees are higher in markets with relatively strict investor protection compared to those in markets with relatively lax investor protection.
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Keywords: Audit fees; Cross-country comparison; Investor protection; Taiwan audit market
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Corresponding author
; e-mail: kunchih@ntu.edu.tw
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©
2024
Review of Accounting and Auditing Studies, ISSN 2221-9374
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