What Does the Auditor Say? Auditors’ Disclosures of Critical Audit Matters and Audit Fees
研究了关键审计事项披露是否包含与审计费用相关的重大错报风险信息，发现审计师风险描述的文字特征和风险类型能捕捉费用相关信息。
SYNOPSIS We examine whether critical audit matter (CAM) disclosures contain information about material misstatement risks that is priced in audit fees. We find that textual features of auditors’ risk descriptions and the types of risks identified capture fee-relevant information. Further, the results are incremental to other determinants of audit fees considered in prior research and to managements’ disclosures in the related notes to the financial statements. Overall, we provide evidence that auditors’ perceptions of audit risks revealed in the newly expanded audit opinion capture information relevant for understanding audit pricing decisions. Data Availability: All data are publicly available from the sources identified in the paper. JEL Classifications: M41; M42; M48.