Graduation Year
2022
Date of Submission
12-2021
Document Type
Campus Only Senior Thesis
Award
Robert Day School Prize for Best Senior Thesis in Economics (Accounting) and Finance
Degree Name
Bachelor of Arts
Department
Economics-Accounting
Reader 1
Joshua Rosett
Terms of Use & License Information
Rights Information
2021 Andrew F Winssinger
Abstract
The purpose of this paper is to evaluate the effects of competition in the audit market on both audit quality and audit fees. Using data from public companies provided by Audit Analytics and Compustat I conduct an empirical analysis of the effects of the Herfindahl index, calculated with data from the National Establishment Time Series database, and relevant controls on audit fees and audit quality using restatements as a proxy for quality. The empirical analysis suggests that competition has statistically insignificant effects on audit quality when evaluated at a county level, but on a zip code level finds that increased competition results in lower audit quality and increased competition lowers audit fees on both the zip code and county levels.
Recommended Citation
Winssinger, Andrew, "The Impacts of Competition in the Audit Market on Audit Fees and Audit Quality" (2022). CMC Senior Theses. 2857.
https://scholarship.claremont.edu/cmc_theses/2857
This thesis is restricted to the Claremont Colleges current faculty, students, and staff.
