Audit pricing following mergers of accounting practices: evidence from Hong Kong
Article Abstract:
A study on calculation of audit fees after company mergers is done on twocompanies, Kwan Wong Tan & Fon (KWTF) and Deloitte Touche & Tohmatsu's (DTT) merger in 1997, and Coopers and Lybrand (CL) with Price Waterhouse (PW) in 1998 to form PricewaterCoopers (PwC). The study reveals in the first case that the DTT audit fees, which were 55% higher than KWTF premium reduced to 41% in 1998 and to 34% in 1999. In the second case, PW earned audit fees 16.4% higher than those earned by CL and the PwC merger has no audit change in audit fees.
Publication Name: Accounting and Business Research
Subject: Business
ISSN: 0001-4788
Year: 2004
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The endogenous relationship between audit-report type and business termination: evidence on private firms in a non-litigious environment
Article Abstract:
This article examines how Big 6 auditing firms report companies that are about to declare bankruptcy verses companies that go through voluntary liquidation. Also discussed here is the impact of standards placed upon auditing companies.
Publication Name: Accounting and Business Research
Subject: Business
ISSN: 0001-4788
Year: 2003
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Auditor conservatism and reported earnings
Article Abstract:
The authors argue that the largest auditing companies (referred to in the article as the Big Six) are more inclined to impose conservative accounting policies especially upon troubled companies than smaller auditing companies.
Publication Name: Accounting and Business Research
Subject: Business
ISSN: 0001-4788
Year: 2003
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