The effects of financial statement disaggregation on audit pricing

• Main Authors: Koh, Kevin, Tong, Yen Hee, Zhu, Zinan
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2021
• Subjects: Business::Accounting; Business::Auditing; Audit Fees; Aaudit Risk
• Online Access: https://hdl.handle.net/10356/153138
• Institution: Nanyang Technological University

We examine whether the extent of financial statement disaggregation affects the pricing of audit engagements in the United States. We hypothesize and find that auditors assess higher engagement risk and charge higher audit fees for clients with more disaggregated financial statements. We also fin...