1. Audit fee research David Hay Professor of Auditing
University of Auckland

2. David Hay
Professor of Auditing, University of Auckland, New Zealand

3. Overview and findings Level of audit fees Size of fees and dependence
Ratio of non-audit to audit fees
Audit services by firms that have non-audit service business
And
Perspectives of stakeholders
Processes implemented by firms

4. Project timeline
2 Jun
11 Jul
12 Aug
7 Sept
29 Sept
5 Oct
7 Nov
12 Dec

5. Issue 1: Level of audit fees
Level of audit fees for individual audit engagements
Includes
Level: The overall level of fees or fee increases in a country
Share: Market share of audit firms in a country
Determinants: Analysis of factors impacting audit fees

6. Issue 2: Relative size of fees and dependence
Important clients: more work, better quality
Important clients: risk of loss of independence
Evidence of both effects depending on time and place
Partner income is related to clients gained or lost, audit failures

7. Issue 3: Ratio of non-audit to audit fees
Extensive audit fee research
Earlier:
Frankel et al. (2002) study showed concerns
Other studies challenged Frankel et al. (2002)
More current studies show some concerns

8. Issue 4: Audit services by firms that have non-audit service business
Issues
why companies purchase NAS (instead of using in-house management)
why companies purchase NAS from their auditors
Not widely examined

9. Summary Issues: Uncertainties: Competition NAS and audit quality
NAS and independence in appearance
Uncertainties:
High fees and dependence
Firms that have non-audit service businesses

10. Summary table