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Audit Fee Discounting In The Post-Sox Environment, Albert Nagy, Benjamin W. Hoffman
Audit Fee Discounting In The Post-Sox Environment, Albert Nagy, Benjamin W. Hoffman
2017 Faculty Bibliography
Purpose – This paper aims to investigate whether the expected implementation of Section 404(b) of the Sarbanes-Oxley Act (SOX 404(b)) (the integrated audit requirement) caused auditors to discount their audit fees for non-accelerated filers in anticipation of expected increased future economic rents (DeAngelo, 1981) from those clients.
Design/methodology/approach – This paper predicts that auditors charged their non-accelerated filer clients lower audit fees during the years 2005-2007 (in anticipation of increased expected future economic rents from the implementation of the SOX 404(b) requirement) compared with the years 2010- 2012 (when it had been determined that non-accelerated filers were permanently exempt from …