dc.contributor.authorKoh, Kevin
dc.contributor.authorTong, Yen H.
dc.identifier.citationKoh, K., & Tong, Y. H. (2013). The Effects of Clients' Controversial Activities on Audit Pricing. AUDITING: A Journal of Practice & Theory, 32(2), 67-96.en_US
dc.description.abstractWe examine the effects of clients' involvement in controversial corporate activities on audit pricing. Clients' involvement in controversial activities raises concerns about management integrity and ethics. Moreover, clients involved in such activities are perceived to have higher risk of adverse financial performance. As a result, there is greater potential for financial misstatement, which increases the auditor's perceived business risk. We hypothesize that, given the higher perceived business risk, auditors charge higher fees to clients engaged in controversial activities. Using a unique dataset from Kinder, Lydenberg, and Domini, we identify clients that engage in controversial activities related to consumers, employees, the community, and the environment. Consistent with our hypothesis, we find that clients involved in controversial corporate activities pay higher audit fees compared to clients not involved in such activities.en_US
dc.relation.ispartofseriesAUDITING: a journal of practice & theoryen_US
dc.titleThe effects of clients' controversial activities on audit pricingen_US
dc.typeJournal Article
dc.contributor.schoolCollege of Business (Nanyang Business School)en_US

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