Research shows that audit fees have increased after the SOX ban on providing non-audit services (NAS) to audit clients, but the reasons behind it have been unclear. Using an auction-modeling approach, this study aims to bridge this gap by providing a theoretical explanation for this empirical...

We show that in a contest with many participants and a single prize, the expected effort (or resources) made by a participant whose evaluation of the prize is ranked as the kth highest valuation obeys an exponential rule in the limit and is equal to 1/2^{k} of the total expected effort made by...

The literature shows that audit fees have increased after the SOX ban to audit clients on non-audit services (NAS) but the reason behind it has been unclear until now. Using an auction modeling approach, this study aims to bridge this gap by providing a theoretical explanation for this enigma....