دانلود رایگان مقاله انگلیسی تفاوت قیمت گذاری حسابرسی بین حسابرسی داوطلبانه و اجباری - امرالد 2017

Abstract

Purpose – Despite the extensive research on the determinants of audit pricing in both public and private settings, there is a lack of research about the differences in audit fees between voluntary audits and mandatory audits. The purpose of this paper is to address this gap. Design/methodology/approach – First, a theoretical framework is developed to justify differences in audit pricing between voluntary and mandatory audits. Next, using a sample of Spanish private small and medium enterprises (SMEs) running from 2009 to 2014, the authors empirically test whether the fees charged for voluntary audits differ from those charged for mandatory ones. The authors also examine whether the premium observed among large auditors is persistent in the SME setting, and whether this premium differs depending on whether the audits are voluntary or mandatory. Findings – Although a preliminary analysis does not report significant differences in pricing between voluntary and mandatory audits, additional analyses using samples restricted by company size show that voluntary audits are charged with a premium. The authors observe a premium related to large auditors, and find no significant differences in the audit pricing of Big 4 auditors depending on the mandatory/ voluntary nature of the audit, but the premium associated with Middle-Tier auditors disappears in the voluntary setting. Originality/value – This paper contributes to the previous literature by introducing the examination of differences in audit pricing between voluntary and mandatory audits. As far as the authors know, this is the first study to examine the differences in audit pricing between voluntary and mandatory audits. It also elaborates on studies on audit pricing in SMEs.

6. Conclusions

In the present paper, we have tackled the lack of research into the differences in audit fees between voluntary and mandatory audits. Based on the theory that prices have a signalling effect on credence goods, we argue that voluntarily audited companies may be charged with a premium, that is not charged for mandatory audits, in order to signal their commitment to accounting quality. Using a sample of Spanish SMEs, we empirically examine whether the pricing for voluntary audits is different to mandatory audits. We also examine whether the Big 4 premium observed in previous literature remains among SMEs, especially for voluntary audits. Furthermore, we consider the role of Middle-Tier auditors (Peel and Roberts, 2003; Clatworthy and Peel, 2007; Sundgren and Svanström, 2013). Although initially we did not find significant differences between voluntary and mandatory audits, the additional tests controlling for the comparability of firm size and using the PSM methodology showed that there is a premium for voluntary audits, which we associate with the signalling effect of prices on the quality of voluntary audits, in contrast to “passively compliant” companies which are required to be audited and choose “low-cost” audits regardless of their quality. With regard to large auditors, we find a Big 4 premium in both the voluntary and mandatory settings, while the premium associated with Middle-Tier auditors is not significant in the voluntary setting. These results suggest that, while Big 4 auditors may be concerned about the effect that different price policies can have on their audit quality reputation, Middle-Tier auditors are willing to follow a different competitive strategy for voluntary audits, in order to gain access to this market segment.