AUDITOR CHOICE AND AUDIT FEE DETERMINANTS
构建分析模型，预测客户公司内部控制强度、业务风险与审计复杂性如何影响审计师质量选择和审计费用，并解释了一些被视为实证异常的现象。
An analytical model predicts that cross‐sectionally (1) the marginal cost of auditor quality is inversely related to the strength of client companies' internal control. (2) In the short run, clients with stronger control, lower business risk, or less complex audits choose higher quality auditors; but whether they pay higher audit fees is indeterminate. (3) In the long run, client companies have both lower quality auditors and weaker controls as risk or complexity increase, so less precise financial reporting is expected from them. (4) The effects of risk and complexity on fees are indeterminate, because the price and quantity components of fees tend to vary inversely as risk or complexity change. The predictions are consistent with findings that have been viewed as empirical anomalies.