The Effect of Arthur Andersen's Demise on Clients' Audit Fees and Auditor Conservatism: International Evidence

• Main Authors: SRINIDHI, Bin, HOSSAIN, Mahmud, LIM, Chee Yeow
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2012
• Subjects: Accounting; Business Law, Public Responsibility, and Ethics
• Online Access: https://ink.library.smu.edu.sg/soa_research/1185; https://ink.library.smu.edu.sg/context/soa_research/article/2184/viewcontent/EffectAADemiseClientAuditFees_2012.pdf
• Institution: Singapore Management University

Using samples from 12 non-U.S.A. countries, we find that following Arthur Andersen's failure in the United States of America, successor Big-N auditors charged an audit fee premium for ex-Andersen clients compared to existing clients and non-Andersen switch-ins. We show that this audit fee premi...