The pricing of initial audit engagements has long been of interest to regulators because of audit quality concerns speculated to arise with lowball pricing tactics. However, there has been very little empirical investigation specifically aimed at understanding the link between audit fees and...

When subject matter experts are consulted during an audit, the quality of the expert's advice depends upon their ability to fully understand and incorporate client-specific facts into their advice. PCAOB inspection reports suggest that auditors are neglecting to perform the required work to...