The provision of non-audit services and the pricing of audit fees
Journal of Business Finance and Accounting
There have been a number of studies examining audit fees and this research has covered various nations. Recent legislation in Norway requires a company to disclose information on the audit fee and the fees for non-audit services paid to its auditor. Using this data, models of audit fee structure are developed. As with other studies, the size of the company is a major determinant of the audit fee. Payments for non-audit services are positively and significantly associated with audit fees; this relationship is difficult to explain although it parallels some research in the United States. Overall, the models explain about 75 per cent of the variability in audit fees.
Copyright © Blackwell Publishers Ltd. 1997
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Firth, M. (1997). The provision of non-audit services and the pricing of audit fees. Journal of Business Finance & Accounting, 24(3), 511-525. doi: 10.1111/1468-5957.00118