Determinants of audit fees for French quoted firms
Abstract
Purpose
This study seeks to contribute to the international literature by researching the factors influencing audit fees in France, where law requires a joint auditing process involving two separate auditors for firms that publish consolidated financial statements.
Design/methodology/approach
Since, 2003, the disclosure of audit fees has been compulsory in France, but numerous firms decided to voluntarily disclose their audit fees for the year 2002. An attempt is made here to elucidate the amount spent on audit fees in 2002 in a sample of 127 French (non‐financial) firms.
Findings
The main finding is that audit fees depend on firm size, firm risk, and the presence of two of the Big Four firms. When two Big Four firms audit company accounts, the fees charged (adjusted for company size) are significantly lower in comparison with those paid in the other cases. These results appear not to have been influenced by the share of fees paid by the companies to the main auditor.
Originality/value
This study is original because the French law requires a joint auditing process involving two separate auditors.
Keywords
Citation
Gonthier‐Besacier, N. and Schatt, A. (2007), "Determinants of audit fees for French quoted firms", Managerial Auditing Journal, Vol. 22 No. 2, pp. 139-160. https://doi.org/10.1108/02686900710718654
Publisher
:Emerald Group Publishing Limited
Copyright © 2007, Emerald Group Publishing Limited