Proceedings of the 2016 International Conference on Management Science and Management Innovation

The Influence of Accounting Comparability on the Audit Fees

Authors
Jin-Jian Yang, Zi-Xuan Zhou, Yi-Wen Wang
Corresponding Author
Jin-Jian Yang
Available Online August 2016.
DOI
10.2991/msmi-16.2016.72How to use a DOI?
Keywords
Accounting Comparability; Audit Fees; Audit Risk; Auditability
Abstract

Based on the Simunic model and the surplus-earnings regression model (De Franco et al.), we build a research model according to the relationships between variables of the audit input, risk premium and accounting comparability. The result shows that the accounting comparability has a huge effect on audit fees. Companies having a high level of accounting comparability collect low audit fees, vice versa. Further research shows that, the accounting comparability influences the audit fees through two ways. One is to improve the efficiency of obtaining external information and enhance the auditability on the financial statement, and then decrease the input on the audit by reducing the human capital investment. The other is to reduce the audit risk so as to decrease the risk premium required by accountant. The research also shows that the first influence way is more remarkable comparing to the second way.

Copyright
© 2016, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

Volume Title
Proceedings of the 2016 International Conference on Management Science and Management Innovation
Series
Advances in Economics, Business and Management Research
Publication Date
August 2016
ISBN
978-94-6252-236-7
ISSN
2352-5428
DOI
10.2991/msmi-16.2016.72How to use a DOI?
Copyright
© 2016, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Jin-Jian Yang
AU  - Zi-Xuan Zhou
AU  - Yi-Wen Wang
PY  - 2016/08
DA  - 2016/08
TI  - The Influence of Accounting Comparability on the Audit Fees
BT  - Proceedings of the 2016 International Conference on Management Science and Management Innovation
PB  - Atlantis Press
SP  - 308
EP  - 313
SN  - 2352-5428
UR  - https://doi.org/10.2991/msmi-16.2016.72
DO  - 10.2991/msmi-16.2016.72
ID  - Yang2016/08
ER  -