Graduation Year

2022

Date of Submission

12-2021

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics-Accounting

Reader 1

Joshua Rosett

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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.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.

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