The Association between Goodwill Accounting under IFRS and Audit Fees: Empirical Evidence from Australia

• In Event: Audit Issues

Abstract

This paper empirically examines the impact of goodwill accounting under IFRS on audit fee in Australia. Using a sample of 4489 firm-years for 2001-12, we find that goodwill under IFRS has an incrementally positive impact on audit fee over and above that under pre-IFRS Australian GAAP. We also observe that goodwill has a larger impact on audit fee when it is impaired.

Authors

• Humayun Kabir, AUT University

• Asheq R Rahman, Auckland University of Technology