Audit and Non-Audit Fees in Germany — The Impact of Audit Market Characteristics

We investigate the impact of three German audit market characteristics on audit and non-audit fees for the years 2005–2007. We find no relation between audit and non-audit fees, which suggests that audit and non-audit fee determination in Germany does not indicate any particular impairment of audito...

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Bibliographic Details
Published in:Schmalenbach business review 2012-10, Vol.64 (4), p.281-307
Main Authors: Köhler, Annette G., Ratzinger-Sakel, Nicole V. S.
Format: Article
Language:English
Subjects:
Accounting/Auditing
Audit Fees
Auditing
Business and Management
Comparative analysis
Fees
Finance
Germany
Independence
Management
Market analysis
Marketing
Production
Size of enterprise
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Summary:We investigate the impact of three German audit market characteristics on audit and non-audit fees for the years 2005–2007. We find no relation between audit and non-audit fees, which suggests that audit and non-audit fee determination in Germany does not indicate any particular impairment of auditor independence. Further, we find that fee-cutting for initial audit engagements depends significantly on client size. We find no evidence of network-related fee reporting bias due to the ambiguous phrasing of German fee disclosure requirements, which implies that German fee data are internationally comparable.
ISSN:1439-2917
1439-2917
DOI:10.1007/BF03396843