Auditor Reputation: the International Empirical Evidence

A Circular Causality Analysis on the Determinants of the Audit Fees within the NYSE-Quoted Companies

“…There are many other factors which determine a higher or a lower level of the fees charged by the auditor from his clients. The literature about the factors that influence the audit fees is voluminous (Simunic, 1980, O'Keefe et al, 1994Ezzamel et al, 1996;Moizer, 1997, Craswell and Francis, 1999, McMeeking, 2000, Niemi, L., 2002, Cobbin, Ph. E., 2002, Nikkinen, J, Sahlström, P., 2004, Carson, E., Fargher, N., 2007, Boo, E., Sharma, D., 2008, Hay, D., Knechel, W.R., Ling, H., 2008, Zaman, M., Hudaib, M., Haniffa, R., 2011, Fukukava, H., 2011.…”

Auditor appointment in compulsory audit tendering

“…However, we find further that other attributes associated with a quality auditor, specifically reputation, independence, technical expertise and experience (including industry experience), are important both in appointment decisions overall and to councils seeking to rotate their incumbent. Our findings are consistent with the literature that defines audit quality generally in these terms (DeAngelo, 1981a;Herrbach, 2001;Moizer, 1997), and suggest that audit quality considerations in the context of compulsory audit tendering are no less important than in the voluntary tendering context. The second conclusion is that, although one audit fee attribute (the fee is commensurate with the work required) ranked highly in importance, the other (the competitiveness of the fee) ranked much lower.…”

“…Consistent with DeAngelo (1981a), Herrbach (2001) and Moizer (1997), we contend that the best observable ex ante proxies for audit quality are technical competence, independence, and audit firm reputation. We hypothesize that councils predisposed to rotate auditors at compulsory tender will rate these proxies for quality as more important in their auditor appointment decisions compared to councils predisposed to retain their incumbent.…”

A study of auditor–client relationships and problems in the Bahraini audit environment

“…For the audit firm, good performance will enhance firm reputation, (e.g. Moizer, 1998), and the client will be satisfied. For this purposes, it is essential that the client should provide all the information needed to facilitate the auditing process i.e.…”