Auditor industry specialisation, service bundling and partner effects in a mining-dominated city
Data(s) |
01/08/2014
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Resumo |
This study examines auditor industry specialisation effects in Perth, a remote mining town in Australia characterised by a large number of small, homogeneous firms. We consider the impact of leadership by the non-Big 4 auditor BDO Kendalls (BDO) for a sample of 371 mining development stage entities (MDSE's). After controlling for factors known to determine audit fees, we find no evidence of auditor industry leadership fee premiums accruing to (BDO), a result robust to a range of sensitivity tests including the broadening of tests Australia-wide. However, when the dependent variable is redefined to the total 'bundle' of services provided by the audit firm (including audit and non-audit fees), the industry leader is shown to earn a fee premium suggesting BDO uses audits as a conduit to supply higher margin non-audit services. Our findings suggest that strategic pricing by industry leaders may not be confined to Big 4 firms. |
Identificador | |
Idioma(s) |
eng |
Publicador |
American Accounting Association |
Relação |
http://dro.deakin.edu.au/eserv/DU:30061861/Raftery-auditor-published-2014.pdf http://dro.deakin.edu.au/eserv/DU:30061861/raftery-auditorindustry-evid-2014.pdf http://dro.deakin.edu.au/eserv/DU:30061861/raftery-auditorindustry-inpress-2014.pdf |
Direitos |
2014, American Accounting Association |
Palavras-Chave | #audit fees #industry specialisation #service bundling #non-audit services #second-tier firms #mining industry |
Tipo |
Journal Article |