[PDF] IFRS et audit IFRS et audit Janet Stockton, Jane CA t Stoc kton, O Dunw ood BDO y S.E.N.C Dunwood.R.L.

Does IFRS affect audit fees and audit time for late adopters?

After accounting for pre- and post-years, the authors find that the relationship between IFRS and audit fees, as well as audit time for late adopters, is significant only in the adoption year. However, early adopters experience a significant increase in audit fees and audit time in the transition year to one-year post-adoption.

Do changes in accounting standards affect audit fees?

One major component of business risk is the regulatory framework; hence, Vieru and Schadewitz (2010) found that changes in regulations, including accounting disclosures, is likely to affect audit fees. Changes in accounting standards can cause delays in the preparation and auditing of financial statements.

Is audit fee a function of business risk?

Theoretically, prior studies suggest that audit fee is a function of auditor’s liability losses and cost of time ( Simunic (1980). Both liability losses and auditing time depend on the business risk of the client. Consequently, Seetharaman Gul and Lynn (2002) show a positive relationship between a firm’s business risk and audit fees.