The effect of audit inspections on audit fees

What is it about?

A study was done to look at the cost of having independent inspections in New Zealand. The study used information about audit fees to see how the reforms affected the cost of audits. The results showed that the overall cost of audits did not go up, but the cost of audits for small companies that are listed on the stock market went up more compared to other companies. This means that when independent inspections were introduced, the cost of audits went up for some companies. This information is important for people who make rules about audits and for the companies who get audits.

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