This study aims to investigate the effect of the health crisis, that is, coronavirus disease 2019 (COVID-19), on audit fees.
The authors use a sample of 5,008 international firms over the period 2014 to 2020. They use the ordinary least squares (OLS) regression to investigate the study hypotheses.
The results of OLS regression reveal a negative relationship between the COVID-19 pandemic and audit fees. This finding implies that the pandemic is associated with a reduction in audit fees.
This study contributes to the literature by providing the first comprehensive empirical evidence on the effect of the COVID-19 pandemic on audit fees. The results have implications for regulators and investors.
Despite the existing attempts on COVID-19 and audit fees, to the best of the authors’ knowledge, this study is the first that provides international insights into the economic consequences of COVID-19 on the accounting profession.
