The effect of canceling audit fee floor on audit market competition

• Main Author: 詹孟蓓
• Other Authors: 張文瀞
• Format: Others
• Language: zh-TW
• Published: 2004
• Online Access: http://ndltd.ncl.edu.tw/handle/89918750218478813274

碩士 === 國立彰化師範大學 === 會計學系 === 92 === The cancellation of audit fee floor in 1998 has caused a chain reaction which is an impact on audit market. The audit fee floor is a peculiar remuneration mechanism on Taiwan. However, as a result of its fairness and legality, the debate between the Fair Trade Commission and the Certified Public Accountants Association is still not settled. Due to much conjecture of the impact of canceling audit fee floor on audit market competition, the purpose of this study is to examine the effect of canceling audit fee floor on audit market competition. As a result of the dominant status Big 5 CPA firms always lie in overall audit market, this study focus on Big 5 CPA firms on Taiwan and probes into the Mega-audit market competition (Hadj, Adjusted Herfindahl’s index) changes before and after the event by means of the univariate test. Moreover, we examine the relation of the cancellation of audit fee floor and Mega-audit market competition with the multiple regression test. The result of the univariate test suggests the Hadj of Mega-audit market is significantly different and exist a decreasing phenomenon, and this implies Mega-audit market competition is strengthened before and after canceling audit fee floor. However, the significant relationship between the cancellation of audit fee floor and Mega-audit market competition is not observed in the result of the multivariate test.