Assessing the impact of the Covid-19 pandemic on audit fees: an international evidence

Abstract

Purpose

This study aims to investigate the effect of the health crisis, that is, coronavirus disease 2019 (COVID-19), on audit fees.

Design/methodology/approach

The authors use a sample of 5,008 international firms over the period 2014 to 2020. They use the ordinary least squares (OLS) regression to investigate the study hypotheses.

Findings

The results of OLS regression reveal a negative relationship between the COVID-19 pandemic and audit fees. This finding implies that the pandemic is associated with a reduction in audit fees.

Practical implications

This study contributes to the literature by providing the first comprehensive empirical evidence on the effect of the COVID-19 pandemic on audit fees. The results have implications for regulators and investors.

Originality/value

Despite the existing attempts on COVID-19 and audit fees, to the best of the authors’ knowledge, this study is the first that provides international insights into the economic consequences of COVID-19 on the accounting profession.

Citation

Alkebsee, R.H., Azibi, J., Koutoupis, A. and Dimitriou, T. (2023), "Assessing the impact of the Covid-19 pandemic on audit fees: an international evidence", Journal of Financial Reporting and Accounting, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JFRA-05-2022-0169