Open AccessThe Effects of The Sarbanes-Oxley Act of 2002 On Audit Fees
Author(s) -
Sarah B. Cosgrove,
M. Scott Niederjohn
Publication year - 1970
Publication title -
journal of business strategies
Language(s) - English
Resource type - Journals
eISSN - 2162-6901
pISSN - 0887-2058
DOI - 10.54155/jbs.25.1.31-52
Subject(s) - accounting , audit , business , sarbanes–oxley act , joint audit , legislation , audit evidence , transparency (behavior) , auditor independence , compliance (psychology) , audit plan , internal audit , law , psychology , social psychology , political science
The Sarbanes-Oxley Act of 2002 was intended to improve corporate governanceand increase the transparency of financial audits. The legislation also could havesignificant effects on the public accounting industry. This study finds evidence ofhigher audit fees across all firms resulting from compliance with the law. However,after accounting for self-selection of auditors, we do not find evidence that thesize of the audit firm affects the magnitude of the audit fee increase.