Saturday, May 23, 2015

Related-Party Transactions and Audit Fees: Evidence from China

ABSTRACT

This paper investigates the effect of related-party transactions (RPTs) on audit fees in China. RPTs may violate the arm's-length assumption of regular market-based transactions, impairing the representational faithfulness and verifiability of accounting data and, as a consequence, increase clients' auditor-assessed business risk. The presence and magnitude of such transactions are ...more

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