Research: Are Big 4 Audit Firms Homogenous When it Comes to Audit Pricing?
CPABC academic member Dr. Karel Hrazdil PhD CPA CGA, professor at SFU|Beedie School of Business and Academic Director of the EMBA Program, has authored a paper, along with Dr. Dan Simunic PhD CPA (Illinois) of UBC|Sauder and Nattavut Suwanyangyuan of Brock University, about audit pricing.
Their research paper, “Are the Big-4 audit firms homogenous? Further evidence from audit pricing,” has been published in the International Journal of Auditing and is available as an open access resource through Wiley online library.
Dr. Hrazdil said, “the research provides new evidence on audit pricing within the Big-4 in the US market.” It found that “Audit firms with greater competencies can differentiate itself from competitors in terms of within-industry market share and charge an audit premium for its services.” Hrazdil added, “the [research] results are also highly relevant to the auditing profession in Canada.”
Visit the Wiley Online Library to find the research paper.