Audit pricing following mergers of accounting practices: evidence from Hong Kong

Article Abstract:

A study on calculation of audit fees after company mergers is done on twocompanies, Kwan Wong Tan & Fon (KWTF) and Deloitte Touche & Tohmatsu's (DTT) merger in 1997, and Coopers and Lybrand (CL) with Price Waterhouse (PW) in 1998 to form PricewaterCoopers (PwC). The study reveals in the first case that the DTT audit fees, which were 55% higher than KWTF premium reduced to 41% in 1998 and to 34% in 1999. In the second case, PW earned audit fees 16.4% higher than those earned by CL and the PwC merger has no audit change in audit fees.

Acquisitions & mergers, Mergers, acquisitions and divestments, Company acquisition/merger, Management audit, Management audits, Deloitte Touche Tohmatsu, Coopers & Lybrand L.L.P., Price Waterhouse L.L.P.

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The endogenous relationship between audit-report type and business termination: evidence on private firms in a non-litigious environment

Article Abstract:

This article examines how Big 6 auditing firms report companies that are about to declare bankruptcy verses companies that go through voluntary liquidation. Also discussed here is the impact of standards placed upon auditing companies.

Product standards, safety, & recalls, Belgium, Standards

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Auditor conservatism and reported earnings

Article Abstract:

The authors argue that the largest auditing companies (referred to in the article as the Big Six) are more inclined to impose conservative accounting policies especially upon troubled companies than smaller auditing companies.

Economic aspects

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