2021年7月1日 · Lowballing (LB) is the practice of setting audit fees lower than audit costs during the initial year of an audit engagement to better compete for large and prestigious clients (DeAngelo, 1981, Kanodia and Mukherji, 1994, Bruce, 2010, Desir et al., 2014).

2024年9月18日 · Audit fee lowballing is defined as charging relatively lower audit fees at the start of an audit engagement and increasing fees subsequently to recover the initial lowballing cost. This practice, employed to attract new clients, concerns regulators because of its potential consequences for audit quality.

I N this article, the pricing practice of "'low balling" is examined in a laboratory market environment. In an auditing context, low balling consists of auditors initially setting fees below total current costs in order to be hired by the client. Several sources claim that low balling is prevalent in the market for audit

2020年3月29日 · 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 auditors also charge a significant fee premium to clients with internal control weaknesses.

2019年9月1日 · We find that when an engagement partner's recent history of poor audit quality is observable to audit clients, they are more likely to lose clients and are less likely to be reassigned to serve other clients of the audit firm over the next five years.

§ 200.520 Criteria for a low-risk auditee. An auditee that meets all of the following conditions for each of the preceding two audit periods must qualify as a low-risk auditee and be eligible for reduced audit coverage in accordance with § 200.518.

2017年8月2日 · Employing a Chinese setting where audit reports reveal the identities of engagement auditors, we find that auditors who have performed failed audits also deliver lower-quality audits on other audit engagements, with this ‘‘contagion’’ effect spreading both over time and to other audits performed by these same auditors in the same year.

2021年8月1日 · Audit firms with low operating leverage do not necessarily provide discounts in audit pricing, implying that lowballing is a strategic decision made by such auditors based on their operational capacity. Thus, we assess the effectiveness of this lowballing strategy by documenting audit pricing in the later periods after the initial audit engagement.

2012年11月1日 · Particular attention has been directed toward audit fees that follow a lowballing pattern. When lowballing occurs, clients hire auditors who offer low initial fees, after which auditors must charge higher fees and focus on client retention in order to realize a profit over the course of the client relationship.

2021年7月1日 · Lowballing (LB) is the practice of setting audit fees lower than audit costs during the initial year of an audit engagement to better compete for large and prestigious clients (DeAngelo, 1981, Kanodia and Mukherji, 1994, Bruce, 2010, Desir et al., 2014).