Audit quality and feesevidence from Spain

  1. Isidoro Guzmán-Raja 1
  2. Mariano González-Sánchez 2
  3. Enrique Rúa-Alonso-DeCorrales 3
  4. Juan Francisco Sánchez-García 1
  1. 1 Universidad de Cartagena
    info

    Universidad de Cartagena

    Cartagena de Indias, Colombia

    ROR https://ror.org/0409zd934

  2. 2 Universidad Nacional de Educación a Distancia
    info

    Universidad Nacional de Educación a Distancia

    Madrid, España

    ROR https://ror.org/02msb5n36

  3. 3 Universidad CEU San Pablo
    info

    Universidad CEU San Pablo

    Madrid, España

    ROR https://ror.org/00tvate34

Revista:
Revista española de financiación y contabilidad

ISSN: 0210-2412

Año de publicación: 2021

Volumen: 50

Número: 4

Páginas: 469-492

Tipo: Artículo

DOI: 10.1080/02102412.2021.1919959 DIALNET GOOGLE SCHOLAR

Otras publicaciones en: Revista española de financiación y contabilidad

Resumen

This empirical research uses panel data methodology to find the main factors determining Spanish audit quality. on a sample with more than 60,000 audited companies from 2013 to 2018. Prior to analysing the quality of the audit, we have adjusted the best possible model to the audit fees behaviour in order to extract the abnormal fees. Our dynamic model shows that audited company’s size, the previous year’s audit fees, the years with the same audit firm, the auditor’s opinion, the auditor rotation, the concentration or dedication to the client and the client sector are explanatory factors of audit fees. Further, we find evidence that audit quality improves with number of hours billed for audit work and decreases with sector concentration of auditor and, a novel multiplicative effect, the auditor size by abnormal audit fees, in such a way that the surcharge (abnormal fees) of the big audit firms contribute negatively to improve the audit quality.

Información de financiación

Financiadores

  • Instituto de Contabilidad y Auditoría de Cuentas
    • IDT-ASEPUC-ICAC-2019

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