IDEAS home Printed from https://ideas.repec.org/a/ete/revbec/20090202.html
   My bibliography  Save this article

The Effect of Auditor Industry Specialization on Audit Pricing in Belgium

Author

Listed:
  • Wouter Dutillieux
  • Marleen Willekens

Abstract

Recent studies have documented that auditor industry specialization is associated with higher audit fees for public firms in Australia, the U.S. and the U.K. This paper uses a unique dataset that consists of all audit engagements for the year 2004 to examine this issue in Belgium. We document that in addition to a general Big 4 brand name premium there is a premium for industry specialization. Above that, specialization leads to higher audit fees for both Big 4 specialists and non-Big 4 specialists. We contribute to the literature by documenting the existence of audit fee premiums for industry specialization in the nonlisted client segment of the audit market, while previous research focused on the listed client segment. In additional analyses we show that the largest audit clients do not pay fee premiums for specialization, which could be an indication of their greater bargaining power.

Suggested Citation

  • Wouter Dutillieux & Marleen Willekens, 2009. "The Effect of Auditor Industry Specialization on Audit Pricing in Belgium," Review of Business and Economic Literature, KU Leuven, Faculty of Economics and Business, Review of Business and Economic Literature, vol. 0(2), pages 129-146.
  • Handle: RePEc:ete:revbec:20090202
    as

    Download full text from publisher

    File URL: https://lirias.kuleuven.be/bitstream/123456789/274827/2/RBE+2009-2+-+The+Effect+of+Auditor+Industry+Specialization+on+Audit+Pricing+in+Belgium.pdf
    Download Restriction: no

    More about this item

    Keywords

    auditor industry specialization; private client segment; audit fees; Belgium;

    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

    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:ete:revbec:20090202. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (library EBIB). General contact details of provider: http://edirc.repec.org/data/fekulbe.html .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.