Non-timely 10-k filings and audit fees

• Autores: Changjiang Wang, K. Raghunandan, Ruth Ann McEwen
• Localización: Accounting Horizons, ISSN-e 1558-7975, Vol. 27, Nº. 4, 2013, págs. 735-755
• Idioma: inglés
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• Resumen

  • The SEC requires that firms failing to file their annual reports within the specified deadlines file a Form NT 10-K with the Commission. In this paper, we examine the impact of non-timely filings on audit fees. We find that in the case of accelerated filers, audit fees are 26 (12) percent higher for those firms that had a Form NT 10-K filing in the previous (current) year. There is no such statistically significant association between non-timely filing and audit fees in the case of non-accelerated filers, but this result is driven by the clients of non-Big 4 auditors. Our results add to the stream of research related to non-timely filings of annual reports, and provide additional evidence about differences in audit quality/risk between Big 4 and non-Big 4 audit firms. The results also reinforce findings from recent studies about the significant differences in the market for audit services of accelerated and non-accelerated filer firms