Are Audit Fees Linear in Accruals?

Ryan Casey, Feng Gao, Michael T. Kirschenheiter, Siyi Li, Shailendra Pandit
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引用次数: 1

Abstract

This study examines the role of accruals in the pricing of financial statement audits. We posit that both large positive and large negative accruals represent increases in the auditor’s inherent risk, resulting in a nonlinear relation between accruals and audit fees. Consistent with our expectations, we find that both large negative and large positive total accruals are associated with higher audit fees. Further, the nonlinear relation between total accruals and audit fees is asymmetric, with a steeper slope on positive total accruals than negative total accruals. We next partition total accruals into specific asset accruals using an approach developed by Casey, Gao, Kirschenheiter, Li, and Pandit (2016, 2017) and find that accruals originating from different transactions exhibit predictably nonlinear relations with audit fees. On the whole, our results suggest that auditors respond asymmetrically to accruals based on the magnitude and source of the accrual.
应计审计费用是否呈线性?
本研究探讨应计项目在财务报表审计定价中的作用。我们假设,大量的正负应计项目都代表着审计师固有风险的增加,从而导致应计项目与审计费用之间的非线性关系。与我们的预期一致,我们发现无论是大的负和正的应计总额都与较高的审计费用有关。此外,应计总额与审计费用之间的非线性关系是不对称的,应计总额为正的斜率比应计总额为负的斜率更陡。接下来,我们使用Casey、Gao、Kirschenheiter、Li和Pandit(2016、2017)开发的方法将应计总额划分为具体的资产应计项目,并发现来自不同交易的应计项目与审计费用表现出可预测的非线性关系。总的来说,我们的结果表明,审计师对应计项目的反应是不对称的,这取决于应计项目的规模和来源。
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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