Auditor Industry Specialization and Audit Pricing and Effort
- Authors
- Bae, Gil Soo; Choi, Seung Uk; Lee, Jae Eun
- Issue Date
- 2월-2019
- Publisher
- AMER ACCOUNTING ASSOC
- Keywords
- auditor industry expertise; expert knowledge transfer; audit firms; engagement partners; audit hours; expert fee premiums
- Citation
- AUDITING-A JOURNAL OF PRACTICE & THEORY, v.38, no.1, pp.51 - 75
- Indexed
- SSCI
SCOPUS
- Journal Title
- AUDITING-A JOURNAL OF PRACTICE & THEORY
- Volume
- 38
- Number
- 1
- Start Page
- 51
- End Page
- 75
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/67741
- DOI
- 10.2308/ajpt-52039
- ISSN
- 0278-0380
- Abstract
- We find that auditor industry expertise is both a firm-level and partner-level phenomenon, which suggests that industry expertise captured by accounting firms is dispersed among engagement partners through knowledge sharing and transfers within audit firms. We also find that the higher audit fees by expert auditors are due to more hours and not higher rates. While spending more hours allows expert auditors to extract higher fees in total, the finding that expert firms/partners exert greater effort does not support the suggestion that expert auditors are in general more efficient in audit production. However, we find weak evidence that audit hours for expert auditors are lower in industries and companies with homogenous operations and comparable accounting than in other industries and companies. This finding suggests that knowledge transfers more likely take place in homogeneous and comparable industries, leading to production efficiency that moderates the increase in audit hours charged by experts.
- Files in This Item
- There are no files associated with this item.
- Appears in
Collections - Korea University Business School > Department of Business Administration > 1. Journal Articles
Items in ScholarWorks are protected by copyright, with all rights reserved, unless otherwise indicated.