Abstract
AbstractThis study examines the impact of various types of inquiry letters on audit pricing using samples from Shenzhen and Shanghai listed companies during the 2015–2020 period. We found that the audit fees for receiving financial report inquiry letters were higher than those for receiving non‐financial ones. In particular, when the entity being audited received annual report inquiry letters concerning internal control and requested the accounting firm to verify and respond, the audit fees for that company for the following year were higher. This study identified the mechanisms by which inquiry letters affect certified public accountant (CPA) charges.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call