MICRO ANALYSIS OF AUDIT REVENUE IN NEW ZEALAND

Umapathy Ananthanarayanan and Peter Harris

Accounting & Taxation, 2020, vol. 12, issue 1, 1-10

Abstract: Data analysis enhances the quality of audit. Data analysis also enable auditors to gain better insights, draw better conclusions and ultimately improve the audit process. Audit profession of the late uses more data analysis to improve their audit planning, monitoring and control. Our analysis aims to use such a technique to analyze and visualize financial and audit data of listed companies from New Zealand stock exchange. Our analysis finds that New Zealand audit market has a unique market segmentation favoring the big four firms and the audit market is highly competitive with low auditor turnover. Our analysis find evidence that big four firms charge premium for their services in New Zealand. Compliance costs increase the audit and non-audit services fee and we find evidence in our analysis that the adoption of International Financial Reporting Standards (IFRS) increases both the audit and non-audit services fee in the year 2007 and 2008. Other interesting findings suggest that city of the auditor office is important and industry specialization of the audit firm determine their revenue share in some the industries

Keywords: New Zealand; Audit Fees; SOX; IFRS (search for similar items in EconPapers)
JEL-codes: M42 M48 M49 (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.theibfr2.com/RePEc/ibf/acttax/at-v12n1-2020/AT-V12N1-2020-1.pdf (application/pdf)

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:ibf:acttax:v:12:y:2020:i:1:p:1-10

Access Statistics for this article

Accounting & Taxation is currently edited by Terrance Jalbert

More articles in Accounting & Taxation from The Institute for Business and Finance Research
Bibliographic data for series maintained by Mercedes Jalbert ( this e-mail address is bad, please contact ).