TY - JOUR
T1 - Are Audit Fees Discounted in Initial Year Audit Engagements? Further Evidence From U.S.-Traded Foreign Companies
AU - Huang, Ting Chiao
AU - Huang, Hua Wei
AU - Hairston, Stephanie
N1 - Publisher Copyright:
© The Author(s) 2026
PY - 2026
Y1 - 2026
N2 - This paper investigates whether initial-year audit fee discounting occurs in U.S.-traded foreign companies. Using a sample of 5,568 company-years from 2007 to 2018, we find evidence of fee discounting after accounting for measurement bias identified by Barua et al. (2020). Our analysis also suggests that the extent of discounting varies based on regulatory environments and the economic significance of these companies to their auditors, including both audit and nonaudit services. However, we find mixed evidence on whether fee discounting impacts audit quality.
AB - This paper investigates whether initial-year audit fee discounting occurs in U.S.-traded foreign companies. Using a sample of 5,568 company-years from 2007 to 2018, we find evidence of fee discounting after accounting for measurement bias identified by Barua et al. (2020). Our analysis also suggests that the extent of discounting varies based on regulatory environments and the economic significance of these companies to their auditors, including both audit and nonaudit services. However, we find mixed evidence on whether fee discounting impacts audit quality.
UR - https://www.scopus.com/pages/publications/105029506552
UR - https://www.scopus.com/pages/publications/105029506552#tab=citedBy
U2 - 10.1177/0148558X261422898
DO - 10.1177/0148558X261422898
M3 - Article
AN - SCOPUS:105029506552
SN - 0148-558X
JO - Journal of Accounting, Auditing and Finance
JF - Journal of Accounting, Auditing and Finance
ER -