search query: @indexterm AUDITING / total: 1120
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| Author: | Ferguson, A. Francis, J. R. Stokes, D. J. |
| Title: | The Effects of Firm-Wide and Office-Level Industry Expertise on Audit Pricing |
| Journal: | Accounting Review
2003 : APR, VOL. 78:2, p. 429-448 |
| Index terms: | ACCOUNTING AUDITING PRICING |
| Language: | eng |
| Abstract: | This study examines the role of auditor industry expertise in the pricing of Big 5 audits in Australia. The authors test if the audit market prices an auditor's firm-wide industry expertise, or alternatively if the audit market only prices office-level expertise in those specific cities where the auditor is the industry leader. The authors document that there is an average premium of 24 percent associated with industry expertise when the the auditor is both the city-specific industry leader and one of the top two firms nationally in the industry. However, the top two firms nationally do not earn a premium in cities where they are not city leaders. The authors further document that national leadership rankings are, in fact, driven by the specific offices where accounting firms are city leaders. |
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