On the Relationship between Audit Tenure and Fees Paid to the Audit Firm and Audit Quality

IF 4.6 Q1 BUSINESS, FINANCE Accounting in Europe Pub Date : 2020-01-02 DOI:10.1080/17449480.2019.1669808
Josep García-Blandón, J. M. Argiles, Diego Ravenda
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引用次数: 12

Abstract

Abstract We investigate the impact of audit firm tenure, partner tenure, audit fees, fees for non-audit services and total fees on audit quality, as measured by discretionary accruals. Our sample consists of Spanish non-financial public companies for the years between 2006 and 2013. Results indicate that audit quality increases with audit firm tenure but decreases with partner tenure. Moreover, the level of fees paid to the audit firm seems to have a negative impact on audit quality, which is mainly driven by fees for audit services. In this regard, we do not observe any significant relationship between fees for non-audit services and audit quality. Our results also show that the negative relationship between either long partner tenures or high fees and audit quality does not occur when the tenure with the audit firm is long. Therefore, long audit firm tenures do not only seem to involve higher audit quality ‘per se’, but also moderate the negative effects of partner tenure and audit fees on audit quality. The results of this study, which are robust to several sensitivity checks, may be relevant for the current debate on auditor rotation and the joint provision of audit and non-audit services.
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论审计任期与审计事务所收费和审计质量的关系
摘要我们研究了审计事务所任期、合伙人任期、审计费用、非审计服务费用和总费用对审计质量的影响,以可支配性应计项目衡量。我们的样本包括2006年至2013年间的西班牙非金融上市公司。结果表明,审计质量随审计事务所任期的增加而增加,但随合伙人任期的增加而降低。此外,支付给审计公司的费用水平似乎对审计质量有负面影响,这主要是由审计服务费用驱动的。在这方面,我们没有观察到非审计服务的费用与审计质量之间有任何显著关系。我们的研究结果还表明,当合伙人在审计事务所的任期较长时,长期任期或高收费与审计质量之间的负相关关系并不发生。因此,较长的审计事务所任期似乎不仅涉及更高的审计质量“本身”,而且还缓和了合伙人任期和审计费用对审计质量的负面影响。这项研究的结果经得起若干敏感性检查,可能与目前关于审计员轮调和联合提供审计和非审计服务的辩论有关。
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来源期刊
Accounting in Europe
Accounting in Europe BUSINESS, FINANCE-
CiteScore
5.00
自引率
7.10%
发文量
14
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