DO AUDITORS ASSESS THE SYSTEMATIC MARKET RISK IN THEIR AUDIT PRICING DECISIONS? INTERNATIONAL EVIDENCE

✍ Scribed by Jussi Nikkinen; Petri Sahlström

• Book ID: 104345549
• Publisher: Elsevier Science
• Year: 2003
• Tongue: English
• Weight: 71 KB
• Volume: 20
• Category: Article
• ISSN: 0882-6110
• DOI: 10.1016/s0882-6110(03)20010-9

✦ Synopsis

This study investigates whether auditors assess the systematic market risk in their audit pricing decisions. According to the audit pricing model of , the audit fee is a function of the audit effort and the auditor's client specific risk. Since an auditor has several clients, the systematic risk of a firm should be taken into account in audit pricing. To empirically investigate this issue across different environments, data from