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International accounting network memberships and audit fees: Evidence from China

Author

Listed:
  • Xuemei Xiong
  • Ruoting Zheng
  • YanJian Liu
  • Xuanhao Huang

Abstract

This paper investigates the international accounting network memberships’ impact on audit fees. We find that, firstly, the audit fees charged by the member audit firms are significantly higher; secondly, if the revenue, ranking or audit and accounting business share of the international network the audit firm join is higher, the charge is also higher. Additional results show that economic policy uncertainty will intensify this positive relationship, and member audit firms charge higher fees by improving their overseas expertise. We also find that international network memberships will reduce abnormal audit fees, and improve the quality of financial reports.

Suggested Citation

  • Xuemei Xiong & Ruoting Zheng & YanJian Liu & Xuanhao Huang, 2024. "International accounting network memberships and audit fees: Evidence from China," PLOS ONE, Public Library of Science, vol. 19(1), pages 1-25, January.
    • Handle: RePEc:plo:pone00:0296304
    DOI: 10.1371/journal.pone.0296304
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    References listed on IDEAS

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