作者：Bae, Gil S.; Choi, Seung U. K.; Lamoreaux, Phillip T.; Lee, Jae E.
作者单位：Korea University; Kyung Hee University; Arizona State University; Arizona State University-Tempe; Hongik University
摘要：We examine the relation between low-quality internal controls and audit fee premiums. Using a novel data set of audit hours and audit fees we find, consistent with the audit risk model, that auditors increase their effort (hours) owing to low internal control quality. We find that auditorsalsocharge a significant fee premium to clients with internal control weaknesses. This premium is observed for severe internal control weaknesses and companies with low-quality alternative governance mechanis...
