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The Relationship between Principles-Based Accounting Rules and Audit Fees

Dawna Drum et al.

Journal of Accounting, Business and Management2025https://doi.org/10.31966/jabminternational.v32i1.1000article
ABDC C
Weight
0.50

What the paper says

This paper examines the relations between principles-based accounting standards and audit fees. Our empirical evidence suggests auditors charge a lower fee when firms’ standards are more principles based. Our result is consistent with the notion that principles-based accounting standards improve earnings quality and reduce auditor’s risk-related premium. Further analyses indicate this fee saving is more pronounced for firms with stronger corporate governance and firms in post-SOX era. The results add to the growing body of literature examining cost/benefit of principles-based accounting standards, as well as to the literature of the determinants of audit fees.

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Cite this paper

https://doi.org/https://doi.org/10.31966/jabminternational.v32i1.1000

Or copy a formatted citation

@article{dawna2025,
  title        = {{The Relationship between Principles-Based Accounting Rules and Audit Fees}},
  author       = {Dawna Drum et al.},
  journal      = {Journal of Accounting, Business and Management},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.31966/jabminternational.v32i1.1000},
}

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The Relationship between Principles-Based Accounting Rules and Audit Fees

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.