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"Abnormal audit fees and audit quality: Australian evidence" by Sarowar Hossain and Jenny Jing Wang

We examine the association between abnormal audit fees and audit quality using Australian data. We find that audit quality, measured by auditorsโ€™ propensity to issue going concern opinions for financially distressed companies, discretionary accruals, and clientsโ€™ propensity to meet or beat earnings benchmarks, declines as positive abnormal audit fees increase in magnitude. Our findings support an economic bonding argument that positive abnormal audit fees reflect the extent of economic bondi...
Abnormal Audit Fees Audit Quality Auditor Independence Iscretionary Accruals Going Concern
Source: uow.edu.au

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