An investigation of pricing behavior in the municipal audit market

Lynn A. Johnson

Accounting Forum, 2001, vol. 25, issue 1, 89-101

Abstract: Several researchers have identified conditions in which incumbent auditors have the possibility of receiving abnormal profits, which is expected to result in lowballing on the initial engagement. The frequency with which incumbent auditors are able to extract economic rents is examined for governmental audits conducted by a regional audit firm. The results indicate that existing theory is not supported on approximately one third of the continuing engagements. The frequency of initial audit lowballing is also examined. The results indicate that lowballing frequently occurs but does not appear to be related to the availability of subsequent abnormal profits.

Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1111/1467-6303.00057 (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:taf:accfor:v:25:y:2001:i:1:p:89-101

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/racc20

DOI: 10.1111/1467-6303.00057

Access Statistics for this article

Accounting Forum is currently edited by Carol Tilt

More articles in Accounting Forum from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().