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Effects of auditor experience on audit fees: a cross-industry analysis based on fair value accounting

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  • Hsiao-Lun Lin
  • Ai-Ru Yen

Abstract

This study examines the cross-industry effects of auditors' experience on audit fees. We focus on whether auditors' experience with financial clients affects audit fees when auditing financial assets for non-financial clients. Utilising data from public companies in Taiwan's nonfinancial industries, we find that audit fees are positively associated with the proportion of Level 3 financial assets held by non-financial clients. However, auditors' experience in the financial industry mitigates the fee increase associated with higher proportions of Level 3 financial assets for these clients. These findings suggest that auditors can effectively leverage their financial industry experience when auditing financial assets in other industries. While prior research emphasises within-industry effects of auditors' expertise, this study extends the literature by examining cross-industry impacts. Additionally, it contributes to existing studies on fair value accounting by analysing industries beyond real estate and financial sectors.

Suggested Citation

  • Hsiao-Lun Lin & Ai-Ru Yen, 2026. "Effects of auditor experience on audit fees: a cross-industry analysis based on fair value accounting," International Journal of Accounting, Auditing and Performance Evaluation, Inderscience Enterprises Ltd, vol. 22(2), pages 268-288.
    • Handle: RePEc:ids:ijaape:v:22:y:2026:i:2:p:268-288
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