IDEAS home Printed from https://ideas.repec.org/a/ijb/journl/v16y2017i1p75-100.html
   My bibliography  Save this article

IFRS Adoption and Audit Fees-Evidence from New Zealand

Author

Listed:
  • Muhammad Nurul Houqe

    (School of Accounting & Commercial Law, Victoria University of Wellington, New Zealand)

Abstract

Using a sample of 141 firms from New Zealand, this study finds evidence to support the hypothesis that IFRS adoption has a positive effect on audit fees. Given the considerable discussion about mandating IFRS for U.S.A. firms by the Securities and Exchange Commission (SEC), this study's results are both important and well-timed.

Suggested Citation

  • Muhammad Nurul Houqe, 2017. "IFRS Adoption and Audit Fees-Evidence from New Zealand," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 16(1), pages 75-100, June.
    • Handle: RePEc:ijb:journl:v:16:y:2017:i:1:p:75-100
    as

    Download full text from publisher

    File URL: https://ijbe.fcu.edu.tw/assets/ijbe/past_issue/No.16-1/pdf/vol_16-1-5.pdf
    Download Restriction: no
    File URL: https://ijbe.fcu.edu.tw/assets/ijbe/past_issue/No.16-1/abstract/05.html
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Keitha Dunstan & Gerry Gallery & Thu Phuong Truong, 2011. "Public regulatory reform and management earnings forecasts in a low private litigation environment," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 51(2), pages 437-465, June.
    2. Palmrose, Zv, 1986. "Audit Fees And Auditor Size - Further Evidence," Journal of Accounting Research, Wiley Blackwell, vol. 24(1), pages 97-110.
    3. Ole‐Kristian Hope, 2003. "Disclosure Practices, Enforcement of Accounting Standards, and Analysts' Forecast Accuracy: An International Study," Journal of Accounting Research, Wiley Blackwell, vol. 41(2), pages 235-272, May.
    4. Simunic, Da, 1980. "The Pricing Of Audit Services - Theory And Evidence," Journal of Accounting Research, Wiley Blackwell, vol. 18(1), pages 161-190.
    5. Vieru, Markku & Schadewitz, Hannu, 2010. "Impact of IFRS transition on audit and non-audit fees: evidence from small and medium-sized listed companies in Finland," MPRA Paper 44664, University Library of Munich, Germany.
    6. Ronen, Joshua, 2002. "Policy reforms in the aftermath of accounting scandals," Journal of Accounting and Public Policy, Elsevier, vol. 21(4-5), pages 281-286.
    7. Ferdinand A. Gul, 2006. "Auditors' Response to Political Connections and Cronyism in Malaysia," Journal of Accounting Research, Wiley Blackwell, vol. 44(5), pages 931-963, December.
    8. Holger Daske & Luzi Hail & Christian Leuz & Rodrigo Verdi, 2008. "Mandatory IFRS Reporting around the World: Early Evidence on the Economic Consequences," Journal of Accounting Research, Wiley Blackwell, vol. 46(5), pages 1085-1142, December.
    9. Hope, Ole-Kristian & Kang, Tony & Thomas, Wayne & Yoo, Yong Keun, 2008. "Culture and auditor choice: A test of the secrecy hypothesis," Journal of Accounting and Public Policy, Elsevier, vol. 27(5), pages 357-373.
    10. Michael Bradbury & Tony Zijl, 2006. "Due Process and the Adoption of IFRS IN New Zealand," Australian Accounting Review, CPA Australia, vol. 16(39), pages 86-94, July.
    11. David F. Larcker & Scott A. Richardson, 2004. "Fees Paid to Audit Firms, Accrual Choices, and Corporate Governance," Journal of Accounting Research, Wiley Blackwell, vol. 42(3), pages 625-658, June.
    12. Jaggi, Bikki & Low, Pek Yee, 2011. "Joint Effect of Investor Protection and Securities Regulations on Audit Fees," The International Journal of Accounting, Elsevier, vol. 46(3), pages 241-270, September.
    13. Jeanjean, Thomas & Stolowy, Hervé, 2008. "Do accounting standards matter? An exploratory analysis of earnings management before and after IFRS adoption," Journal of Accounting and Public Policy, Elsevier, vol. 27(6), pages 480-494.
    14. David C. Hay & W. Robert Knechel & Norman Wong, 2006. "Audit Fees: A Meta†analysis of the Effect of Supply and Demand Attributes," Contemporary Accounting Research, John Wiley & Sons, vol. 23(1), pages 141-191, March.
    15. Simunic, Da, 1984. "Auditing, Consulting, And Auditor Independence," Journal of Accounting Research, Wiley Blackwell, vol. 22(2), pages 679-702.
    16. Reynolds, J. Kenneth & Francis, Jere R., 2000. "Does size matter? The influence of large clients on office-level auditor reporting decisions," Journal of Accounting and Economics, Elsevier, vol. 30(3), pages 375-400, December.
    17. Paul A. Griffin & David H. Lont & Yuan Sun, 2009. "Governance regulatory changes, International Financial Reporting Standards adoption, and New Zealand audit and non‐audit fees: empirical evidence," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 49(4), pages 697-724, December.
    18. Md Humayun Kabir & Fawzi Laswad & Md Ainul Islam, 2010. "Impact of IFRS in New Zealand on Accounts and Earnings Quality," Australian Accounting Review, CPA Australia, vol. 20(4), pages 343-357, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sang Cheol Lee & Jaewan Park & Mooweon Rhee & Yunkeun Lee, 2018. "Moderating Effects of Agency Problems and Monitoring Systems on the Relationship between Executive Stock Option and Audit Fees: Evidence from Korea," Sustainability, MDPI, vol. 10(11), pages 1-24, November.
    2. Mercedes Mareque & Angel Barajas & Francisco Lopez-Corrales, 2018. "The Impact of Union of European Football Associations (UEFA) Financial Fair Play Regulation on Audit Fees: Evidence from Spanish Football," IJFS, MDPI, vol. 6(4), pages 1-20, November.
    3. Kitto, Andrew R., 2024. "The effects of non-Big 4 mergers on audit efficiency and audit market competition☆," Journal of Accounting and Economics, Elsevier, vol. 77(1).
    4. Knechel, W. Robert & Thomas, Edward & Driskill, Matthew, 2020. "Understanding financial auditing from a service perspective," Accounting, Organizations and Society, Elsevier, vol. 81(C).
    5. Ho, Nam, 2023. "Local competition and auditors' provision of non-audit services," Advances in accounting, Elsevier, vol. 63(C).
    6. Sun, Xuan Sean & Habib, Ahsan & Bhuiyan, Md. Borhan Uddin, 2020. "Workforce environment and audit fees: International evidence," Journal of Contemporary Accounting and Economics, Elsevier, vol. 16(1).
    7. Minjung Kang & Jung‐wha Lee & Mihye Ha & Moon‐Kyung Cho, 2021. "Impact of IFRS adoption on audit pricing: evidence from audit hours and unit audit price in the Korean audit market," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(2), pages 3517-3564, June.
    8. Ahmed, Kamran & Chalmers, Keryn & Khlif, Hichem, 2013. "A Meta-analysis of IFRS Adoption Effects," The International Journal of Accounting, Elsevier, vol. 48(2), pages 173-217.
    9. Cahan, Steven & Hay, David & Li, Lina Z., 2021. "Audit firm merger and the strategic response by large audit firms," The British Accounting Review, Elsevier, vol. 53(3).
    10. Sophie Audousset-Coulier, 2015. "Audit Fees in a Joint Audit Setting," European Accounting Review, Taylor & Francis Journals, vol. 24(2), pages 347-377, June.
    11. George Drogalas & Michail Nerantzidis & Dimitrios Mitskinis & Ioannis Tampakoudis, 2021. "The relationship between audit fees and audit committee characteristics: evidence from the Athens Stock Exchange," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 18(1), pages 24-41, March.
    12. Ferdinand A Gul & Arifur Khan & Karen Lai & Getie Dessalegn & Mohammad Badrul Muttakin, 2023. "Corporate political donations and audit fees: Some evidence from Australian audit pricing," Post-Print hal-04511816, HAL.
    13. Houqe, Muhammad Nurul & Monem, Reza M. & Tareq, Mohammad & van Zijl, Tony, 2016. "Secrecy and the impact of mandatory IFRS adoption on earnings quality in Europe," Pacific-Basin Finance Journal, Elsevier, vol. 40(PB), pages 476-490.
    14. Sarowar Hossain & Jenny Jing Wang, 2023. "Abnormal audit fees and audit quality: Australian evidence," Australian Journal of Management, Australian School of Business, vol. 48(3), pages 596-624, August.
    15. Francis, Jere R., 2004. "What do we know about audit quality?," The British Accounting Review, Elsevier, vol. 36(4), pages 345-368.
    16. Ines Maraghni & Mehdi Nekhili, 2017. "Audit committee characteristics and audit fees: Evidence from France [Caractéristiques du comité d’audit et honoraires d’audit : cas des entreprises françaises]," Post-Print hal-01907594, HAL.
    17. Vieru, Markku & Schadewitz, Hannu, 2010. "Impact of IFRS transition on audit and non-audit fees: evidence from small and medium-sized listed companies in Finland," MPRA Paper 44664, University Library of Munich, Germany.
    18. Humayun Kabir & Fawzi Laswad, 2015. "The Impact of Improvements in Institutional Oversight on IFRS Accrual Quality in Europe," Australian Accounting Review, CPA Australia, vol. 25(4), pages 428-444, December.
    19. Warwick Stent & Michael E. Bradbury & Jill Hooks, 2017. "Insights into accounting choice from the adoption timing of International Financial Reporting Standards," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 57, pages 255-276, April.
    20. Juan Carlos Navarro-García & Antonia Madrid-Guijarro, 2014. "The Influence of Improvements in Accounting Standards on Earnings Management: The Case of IFRS," Australian Accounting Review, CPA Australia, vol. 24(2), pages 154-170, June.

    More about this item

    Keywords

    IFRS; New Zealand; audit fees; Big 4;
    All these keywords.

    JEL classification:

    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ijb:journl:v:16:y:2017:i:1:p:75-100. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Szu-Hsien Ho (email available below). General contact details of provider: https://edirc.repec.org/data/cbfcutw.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.