Abstract
We investigate the effect of International Financial Reporting Standards (IFRS) mandatory adoption on audit fees, and how auditor type (Big 4 vs. non-Big 4) could moderate this relationship. Standard setters argue that IFRS adoption has a lot of benefits since it would lead to improving the accounting information quality. However, IFRS adoption has incremental costs also. our findings suggest that auditors charge higher audit fees after IFRS adoption. However, findings reveal that this relationship is more pronounced for non-big 4 audit firms. This study’s findings are important to standard setters as they evaluate the benefits and cost of IFRS adoption.
Published Version (
Free)
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