The Pricing Of Audit Services: Evidence From Romania

Abstract

The main objective of this study is to investigate factors influencing theamount of external audit fees in Romania. Of particular interest is the examination ofthe potential effect of the client size, client complexity, and the size of the audit firmon external audit fees. An audit fee model is used to examine the effect of audit clientsize, client complexity, and the size of the audit firm on the amount of audit fees for asample of audit engagements performed in the tow of Romanian major counties. Thestudy’s results indicate that the amount of external audit fees is significantlyinfluenced by the audit client size, by the amount of turnover, by the number ofemployees. This study is original since it is the first to empirically investigate factorsinfluencing the pricing of audit services in on Romanian audit fee market.