Regulatory intensity and audit fees

IF 2.1 4区管理学 Q2 BUSINESS, FINANCE

International Journal of Auditing Pub Date : 2024-06-29 DOI:10.1111/ijau.12362

Hongkang Xu

引用次数: 0

Abstract

This study employs the measurement of the cost of compliance with all federal paperwork regulations to examine the association between regulatory intensity and audit fees at the company level. Using a sample of US companies from 2003 to 2019, I find that regulatory intensity is positively associated with audit fees, suggesting that firms facing a heavier burden of regulatory compliance tend to incur higher audit fees. The findings are supported by various robustness tests. I also document a positive association between regulatory intensity and audit report lag. Moreover, I find that the positive relation between regulatory intensity and audit fees is more pronounced among firms in high‐litigation industries, which are typically subject to elevated litigation risks. This study contributes to the existing literature by providing new evidence on the relationship between regulatory intensity and audit fees, utilizing a novel and rigorous measure that captures the intensity of a broad range of regulations.

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监管力度和审计费用

本研究采用了对所有联邦文书法规合规成本的衡量方法，以考察公司层面的监管强度与审计费用之间的关联。利用 2003 年至 2019 年的美国公司样本，我发现监管强度与审计费用呈正相关，这表明面临较重监管合规负担的公司往往会产生较高的审计费用。各种稳健性检验都支持这一结论。我还记录了监管强度与审计报告滞后之间的正相关关系。此外，我还发现，监管强度与审计费用之间的正相关关系在高诉讼行业的公司中更为明显，这些公司通常面临较高的诉讼风险。本研究为现有文献提供了监管强度与审计费用之间关系的新证据，采用了一种新颖而严格的测量方法，可以捕捉到广泛的监管强度。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Auditing BUSINESS, FINANCE-

CiteScore

3.70

自引率

15.00%

发文量

期刊介绍： In addition to communicating the results of original auditing research, the International Journal of Auditing also aims to advance knowledge in auditing by publishing critiques, thought leadership papers and literature reviews on specific aspects of auditing. The journal seeks to publish articles that have international appeal either due to the topic transcending national frontiers or due to the clear potential for readers to apply the results or ideas in their local environments. While articles must be methodologically and theoretically sound, any research orientation is acceptable. This means that papers may have an analytical and statistical, behavioural, economic and financial (including agency), sociological, critical, or historical basis. The editors consider articles for publication which fit into one or more of the following subject categories: • Financial statement audits • Public sector/governmental auditing • Internal auditing • Audit education and methods of teaching auditing (including case studies) • Audit aspects of corporate governance, including audit committees • Audit quality • Audit fees and related issues • Environmental, social and sustainability audits • Audit related ethical issues • Audit regulation • Independence issues • Legal liability and other legal issues • Auditing history • New and emerging audit and assurance issues