Regional Disparities in Audit Pricing : Evidence from Switzerland
Type
conference paper
Date Issued
2009-12-04
Author(s)
Abstract
This study's purpose is to prove the existence of regional disparities in terms of the relationship between audit fees and their major determinants. We conduct our study in the not yet analyzed Swiss audit market, which is ideal for identifying regional disparities. First, we show that audit firms compete in two regional markets rather than in the nation-wide market. Second, we provide evidence that the supplier-concentrated markets are generally more competitive than expected. PricewaterhouseCoopers (PwC), the markets' leader, cannot take significant advantage of its dominant markets shares, although Deloitte commands an audit fee premium in one regional audit market. Third, there are clear regional disparities in the mean audit fees, in the difference between the audit fees paid to Ernst & Young, Deloitte, and PwC and the audit fees paid to their respective competitors as well as in the audit fees increase over time
Language
English
Keywords
audit pricing
audit fees
audit quality
big audit firms
market concentration
regional audit market
supplier competition
audit fee determinants
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Verband der Hochschullehrer für Betriebswirtschaft e.V
Start page
26
Event Title
2009 Business Research Conference "Finance, Accounting & Taxation"
Event Location
Frankfurt (Oder)
Event Date
04.12.2009
Subject(s)
Division(s)
Eprints ID
80553