Audit Services Pricing and Competition Theory

Document Type : Original Article

Authors
Zahra Nayebzadeh 1
Bahman Banimahd 2
1 Master Student of Accounting , Islamic Azad university-Science and Research Branch Tehran Iran
2 Associate Professor of Accounting , Islamic Azad university-Karaj Branch (Corresponding Author)
Abstract
The purpose of this paper is to investigate the relationship between audit services pricing and competition theory  in audit private firms. The time period of this study is from 2004 to 2015.  We provide the theoretical foundations and collect data by Archival research method. To analysis the research data, we apply a multivariable regression model. The results show that there is a significant relation between audit fees with client competitive power, client size, debt ratio and sale growth. On the basis of findings of this study, audit fees have a negative and significant relation with client competitive power. That is, when client competitive power increases then audit fees decreases. Also, client size and sale growth have a direct and significant relation with audit fees. That is, when client size and sale growth increase then audit fees increases too. Meanwhile, there is no significant relation between main shareholder percentag with audit fees.
Keywords
Competitive
Audit Pricing
Audit Market and Client size
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