Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/187615 
Year of Publication: 
2010
Citation: 
[Journal:] China Journal of Accounting Research [ISSN:] 1755-3091 [Volume:] 3 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2010 [Pages:] 51-70
Publisher: 
Elsevier, Amsterdam
Abstract: 
The existing literature on audit opinion shopping provides inconsistent evidence on whether such shopping has any association with abnormal audit fees. In this paper, we hypothesize that firms engage in audit opinion shopping and pay an abnormal audit fee only when their degree of accounting quality is low. To examine the issue, we group firms on the basis of their change in return on assets (ROA), and show that abnormal audit fees improve audit opinions only among firms that engage local auditors and have a low degree of ROA, but report a large increase in ROA, especially when the ROA change is the result of abnormal accruals. We find no association between abnormal audit fees and audit opinion improvement for other firms.
Subjects: 
Abnormal audit fees
Audit opinion shopping
JEL: 
M41
M42
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.