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http://dx.doi.org/10.14400/JDC.2016.14.12.111

The Effect of PCAOB on Auditing Fee  

Yoon, Min (Dept. of Statistics, Pukyong National University)
Lee, Jin-Soo (Dept. of Business, Pukyong National University)
Publication Information
Journal of Digital Convergence / v.14, no.12, 2016 , pp. 111-120 More about this Journal
Abstract
PCAOB conducts the direct supervision for the PCAOB registered accounting firm. Therefore, if an accounting firm is registered with the PCAOB, it will thoroughly manage for their quality management systems. The registered auditor can be expected to have better quality of the audit. This study carried out the analysis using the audit fee which proxies for audit quality. The results of analysis are as follows. After controlling for foreign accounting firms affiliated status, company size, risky assets, leverage, ROA, and market-related variables, PCAOB is a significant explanatory variable for the audit fees. The results of this study support the hypothesis that PCAOB-registered auditors will provide a good audit quality.
Keywords
Accounting firm; Audit fee; Audit quality; Discretionary accruals; PCAOB;
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Times Cited By KSCI : 8  (Citation Analysis)
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