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dc.contributor.authorBeattie, Vivienen_UK
dc.contributor.authorGoodacre, Alanen_UK
dc.contributor.authorPratt, Kenen_UK
dc.contributor.authorStevenson, Joannaen_UK
dc.description.abstractGiven the growing demand for accountability in the public sector, there is a need to begin to investigate audit pricing issues in markets within this sector. This study makes three principal contributions. First, it develops and estimates, for the first time, a model of audit fee determinants relevant to the charity sector. The model is based on 210 of the top 500 UK charities with average incoming resources of 27 million pounds. As in previous private sector company studies, size, organisational complexity and audit firm location are the major determinants. A positive association between audit fees and fees for non-audit services is also observed. Charity sector factors of empirical significance include the fundamental nature of the charity (i.e., predominantly grant-making or fund-raising), the importance of trading as a source of charity income and the charity's activity. Separate models are developed for grant-making and fund-raising charities, the results reflecting the relative complexity of the audit of fund-raising charities. Second, the lower auditor concentration in the charity sector market, compared to the private sector market, permits a more powerful test of whether large firms and/or auditor expertise are rewarded with a fee premium. The results show that Big 6 audit firms receive higher audit fees (18.5%, on average) than non-Big 6 firms for audits of fund-raising charities. There is also evidence that non-Big 6 audit firms with expertise in the sector are rewarded with a fee premium over other non-Big 6 firms, again in the more complex audit environment of fund-raising charities. Finally, the study demonstrates that the charity audit fee rate is significantly lower than that of private sector companies; in fact it is approximately half. Further research that discriminates between alternative explanations of this differential is called for. A change in the reporting of charity audit fees is proposed to reflect any element of 'charitable giving' by the audit firm.en_UK
dc.publisherUniversity of Stirlingen_UK
dc.relationBeattie V, Goodacre A, Pratt K & Stevenson J (2000) The Determinants of Audit Fees - Evidence from the Voluntary Sector. University of Stirling, Department of Accounting, Finance & Law, Discussion Paper, 00/04.
dc.relation.ispartofseriesUniversity of Stirling, Department of Accounting, Finance & Law, Discussion Paper, 00/04en_UK
dc.subjectAudit feesen_UK
dc.subjectAuditor expertiseen_UK
dc.subjectCharity sectoren_UK
dc.subjectNon-profit organisationen_UK
dc.subjectFee premiumen_UK
dc.subjectNon-audit servicesen_UK
dc.titleThe Determinants of Audit Fees - Evidence from the Voluntary Sectoren_UK
dc.typeWorking Paperen_UK
dc.type.statusVoR - Version of Recorden_UK
dc.subject.jelM49: Accounting: Otheren_UK
dc.subject.jelL31: Nonprofit Institutions; NGOs; Social Entrepreneurshipen_UK
dc.contributor.affiliationUniversity of Stirlingen_UK
dc.contributor.affiliationAccounting & Financeen_UK
dc.contributor.affiliationUniversity of Stirlingen_UK
dc.contributor.affiliationAccounting & Financeen_UK
rioxxterms.typeWorking paperen_UK
local.rioxx.authorBeattie, Vivien|en_UK
local.rioxx.authorGoodacre, Alan|0000-0003-2632-6765en_UK
local.rioxx.authorPratt, Ken|en_UK
local.rioxx.authorStevenson, Joanna|en_UK
local.rioxx.projectInternal Project|University of Stirling|
Appears in Collections:Accounting and Finance Working Papers

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