Are Audit Fees Discounted in Initial Year Audit Engagements? Further Evidence From U.S.-Traded Foreign Companies

Ting-Chiao Huang, Hua-Wei Huang, Stephanie Hairston, Department of Accounting, Monash Business School, Monash University, Department of Accountancy, National Cheng Kung University, School of Accountancy, Parker College of Business, Georgia Southern University

Journal of Accounting, Auditing & Finance

Published online on February 05, 2026

Abstract

Journal of Accounting, Auditing & Finance, Ahead of Print.
This paper investigates whether initial-year audit fee discounting occurs in U.S.-traded foreign companies. Using a sample of 5,568 company-years from 2007 to 2018, we find evidence of fee discounting after accounting for measurement bias identified by ...