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Further evidence on the determinants of audit pricing in universities

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  • Xue, Bai
  • O'Sullivan, Noel

Abstract

This study investigates the determinants of audit fees for UK universities, involving an analysis of 451 university-year observations over the period 2007–2010. The study contributes to a fledgling strand of research examining audit pricing in the public sector. In seeking to identify an appropriate model to explain audit fees we interview a number of university auditors and use their insights in conjunction with prior findings from both private and public sector studies of audit pricing. Our findings show that audit fees in UK universities are positively influenced by size, the number of subsidiary companies, the amount of endowments, the level of debtors, being located in England and the use of a London-based auditor. We also find that more research-intensive universities (using a range of measures) and universities with greater operating surpluses pay lower audit fees.

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  • Xue, Bai & O'Sullivan, Noel, 2013. "Further evidence on the determinants of audit pricing in universities," Accounting forum, Elsevier, vol. 37(3), pages 196-212.
    • Handle: RePEc:eee:accfor:v:37:y:2013:i:3:p:196-212
    DOI: 10.1016/j.accfor.2012.12.002
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    References listed on IDEAS

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    7. M. Ezzamel & D. Gwilliam & K. Holland, 1996. "Some Empirical Evidence from Publicly Quoted UK Companies on the Relationship Between the Pricing of Audit and Non-audit Services," Accounting and Business Research, Taylor & Francis Journals, vol. 27(1), pages 3-16.
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    10. Mahbub Zaman & Mohammed Hudaib & Roszaini Haniffa, 2011. "Corporate Governance Quality, Audit Fees and Non-Audit Services Fees," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 38(1-2), pages 165-197, January.
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    1. Xue, Bai & O'Sullivan, Noel, 2023. "The determinants of audit fees in the alternative investment market (Aim) in the UK: Evidence on the impact of risk, corporate governance and auditor size," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 50(C).
    2. Carrera, Nieves & Mareque, Mercedes, 2023. "Does gender affect qualifying decisions? Evidence from public sector audits," Journal of Business Research, Elsevier, vol. 154(C).

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