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Are Audit Fees Discounted in Initial Year Audit Engagements? Further Evidence From U.S.-Traded Foreign Companies

Ting-Chiao Huang et al.

Journal of Accounting Auditing and Finance2026https://doi.org/10.1177/0148558x261422898article
AJG 3ABDC A
Weight
0.50

Abstract

This paper investigates whether initial-year audit fee discounting occurs in U.S.-traded foreign companies. Using a sample of 5,568 company-years from 2007 to 2018, we find evidence of fee discounting after accounting for measurement bias identified by Barua et al. (2020). Our analysis also suggests that the extent of discounting varies based on regulatory environments and the economic significance of these companies to their auditors, including both audit and nonaudit services. However, we find mixed evidence on whether fee discounting impacts audit quality.

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https://doi.org/https://doi.org/10.1177/0148558x261422898

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@article{ting-chiao2026,
  title        = {{Are Audit Fees Discounted in Initial Year Audit Engagements? Further Evidence From U.S.-Traded Foreign Companies}},
  author       = {Ting-Chiao Huang et al.},
  journal      = {Journal of Accounting Auditing and Finance},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1177/0148558x261422898},
}

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Are Audit Fees Discounted in Initial Year Audit Engagements? Further Evidence From U.S.-Traded Foreign Companies

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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.