Fair value hierarchy’s effect on banking audit fees: Auditor industry specialization as a moderating variable

Monica Sarah Rosa, Viska Anggraita

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

This research examined the effect of fair value hierarchy on audit fees and auditor industry specialization as a moderating variable by using a sample from banking sectors located in Indonesia, Malaysia, the Philippines, Singapore, and Thailand for 2013 to 2015. Empirical results show that auditors charge higher audit fees for auditing financial assets’ fair values that are relatively harder to verify, i.e., levels 2 and 3, rather than level 1. Auditor industry specialization was found to affect audit fees positively, consistent with differentiation strategy. Finally, auditor industry specialization weakens the positive effect of level 3 assets’ fair value on audit fees.

Original languageEnglish
Title of host publicationAccounting, Auditing, CSR, and the Taxation in a Changing Environment
Subtitle of host publicationA Study on Indonesia
PublisherNova Science Publishers, Inc.
Pages355-374
Number of pages20
ISBN (Electronic)9781536165180
ISBN (Print)9781536162776
Publication statusPublished - 1 Jan 2019

Keywords

  • Audit fee
  • Auditor industry specialization
  • Banking sector
  • Fair value hierarchy

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