国家级别和特定城市级别的审计师行业专长声誉对审计收费的影响.pptVIP

The Pricing of National and City-Specific Reputations for Industry Expertise in the U.S. Audit Market国家级别和特定城市级别的审计师行业专长声誉对审计收费的影响 ABSTRACT: There is a significant fee premium of 19 percent on those engagements where Big 5 auditors are both the nationally top-ranked auditor and the city-level industry leader in the city where the client is headquartered, indicating that national and city-specific industry leadership jointly affect auditor reputation and pricing. However, there is never a premium in any tests for auditors that are national-only industry leaders, indicating that national leadership by itself does not result in a premium. The evidence is mixed with respect to city-only industry leaders. While there is a premium of 8 percent in the primary tests, this result is inconclusive as it does not hold in all sensitivity analyses. The purpose of this study is to examine the pricing of Big 5 industry expertise in the United States based on the joint national-city research framework in Ferguson et al. (2003). Two research questions are investigated. First, is there evidence that Big 5 auditor industry expertise is priced in the U.S. audit market? Second, does the audit market price a Big 5 firms national (firm-wide) reputation or city-specific (local-office) reputation for industry expertise? The appropriate definition and measurement of auditor industry expertise is an important but unresolved issue in auditing research (Hogan and Jeter 1999; Solomon et al.1999; Gramling and Stone 2001; Krishnan 2001; Ferguson et al. 2003). Our study contributes to resolving this issue by examining audit fees to determine if the pricing of industry expertise in the U.S. audit market is based on a firms national reputation (measured using total U.S. clienteles), or alternatively local-office reputations (measured using city-specific clienteles). Can a Big 5 firm capture the industry expertise and distribute it to other offices in the firms netwo