Interpretation and Use of Auditor Fee Disclosures

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Financial Analysts Journal
May 2005 | Vol. 61 | No. 3 | 6 pages
Source: CFA Institute
Denise Dickins Julia Higgs

US$0.00 Member | US$0.00 Candidate | US$15.00 Nonmember

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Abstract

Publicly available fee disclosures have been used by investors and regulators to assess various matters, including the quality of a company's audit, financial reporting, and corporate governance. We find that many companies' disclosures are insufficient, standardized, or inconsistently prepared. This finding has implications for the usefulness of the data because disclosures are informative only to the extent that analysts fully understand their composition, the possibility of varying interpretations, and the potential for bias.

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Topics
Corporate Finance
    :
  • Corporate Governance
|
Financial Statement Analysis
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