Longer term audit costs of IFRS and the differential impact of implied auditor cost structures

Steven Cahan, Stephen Higgins, David Lont (), Tom Scott and Steven Cahan

Accounting and Finance, 2016, vol. 56, issue 1, 165-203

Abstract: type="main" xml:id="acfi12190-abs-0001">

Prior literature finds higher audit fees after the adoption of International Financial Reporting Standards (IFRS). We add to this research by documenting that the post-IFRS increase in audit fees is persistent, and not a short-term effect driven by transitional costs. In addition, early adopters have higher audit fees and this difference continues after IFRS adoption. Next, we consider the effect of increased effort required under IFRS on marginal pricing. Our results find lower (higher) marginal pricing post-IFRS for PwC and Deloitte (EY), suggesting that they have a relatively higher (lower) fixed and lower (higher) variable cost structure.

Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://hdl.handle.net/10.1111/acfi.2016.56.issue-1 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:acctfi:v:56:y:2016:i:1:p:165-203

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0810-5391

Access Statistics for this article

Accounting and Finance is currently edited by Robert Faff

More articles in Accounting and Finance from Accounting and Finance Association of Australia and New Zealand Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().