Evaluating the effects of price competition pressure in the audit services market and bargaining power on audit fees
seyed abbas borhani
1
(
Assistant Professor, Accounting Department, Islamic Azad University, Qom
)
Keywords: audit fee, customer bargaining power, price competition.,
Abstract :
After various financial scandals in the world, the establishment of audit fee discovery regulations was done mainly due to the concern about auditor independence caused by auditors based in providing audit and non-audit services. While the mandatory audit fee disclosure provides information regarding the fees paid to the auditor and the range of services provided by the auditors to their clients, at the same time, it also leads to an increase in the competitive price in the audit market. The present research was conducted in order to evaluate the effects of price competition pressure in the market of audit services and bargaining power on audit fees. The research methodology is practical in terms of its purpose and is based on hypothesis testing. Among the companies admitted to Tehran Stock Exchange, financial information of 118 companies was analyzed during the years 2016 to 2020 using EViews statistical software. The results of the research indicated that the bargaining power of the companies under investigation as audit clients has an effect on the amount of audit fees. Also, the pressure of price competition in the audit services market has an effect on the audit fees of the companies under review