Issue Information

• Date: 01 October 2018
• Published date: 01 October 2018
• DOI: http://doi.org/10.1002/jcaf.22304

VOLUME 29, NUMBER 4 •October 2018

5Letter From the Editor

Jim Edwards

Features

8The Effect of Regulation and Financial Distress on Banks’Auditor Fees

Wayne H. Shaw and William D. Terando

The purpose of this article is to provide a comparison of the impact on audit pricing of the

Sarbanes–Oxley Act of 2002 to that of the 2008 financial collapse and the resulting Dodd–

Frank Wall Street Reform and Consumer Protection Act of 2010. While prior studies have

documented increased audit costs due to SOX, they have not found such increases related to the

other two events. We extend this research into the subsequent two eve nts by focusing on audit

pricing in the banking industry since that industry was most directly impacted by the financial

crisis and Dodd–Frank. In contrast to the prior literature based on industrial firms, we find banks

experienced significant increases in audit fees related to Dodd–Frank that were unexplained by

traditional control variables. Finally, we find mixed evidence of economies of scale in dealing with

the costs of implementing the legislation. While only smaller banks had a significant increase in

audit fees as a percentage of total assets for Dodd–Frank, larger banks experienced significantly

higher audit costs due to SOX.

20 Book-Tax Differences, Corporate Governance Effectiveness and Audit Quality:

An Interactive Effects

Rakia Riguen, Maali Kachouri and Anis Jarboui

In this article, we aim to answer the important questions of whether the corporate

governance effectiveness affects the relationship between book-tax differences (BTDs) and

audit quality. We also aim to determine whether the variability between BTDs and audit

quality is moderated by corporate governance index (CGI). The primary aim of the present

study is to contribute to improving the existence of an interaction between BTDs, audit

quality, and CGI. This study uses a sample of 28 nonfinancial listed Tunisian companies and

covers an eight-year period from 2005 to 2015. To test the hypotheses of this research, a