An empirical investigation of price competition and industry specialisation in NHS audit services

Ilias G. Basioudis, Sheila Ellwood

Research output: Contribution to journalArticle

Abstract

The NHS audit market is regulated by the Audit Commission (AC) and has unique features. We develop a model for audit fees that includes rigorous analysis of the type of auditor. Poor financial standing does not give rise to higher audit fees. Despite regulation the study supports the existence of a Big Five price premium on the audit fee, but only one firm has a premium. We found no premium due to industry specialisation. The removal of performance audit from AC regulation will require improved audit fee reporting and control.
Original languageEnglish
Pages (from-to)219-250
Number of pages32
JournalFinancial Accountability and Management
Volume21
Issue number2
Early online date21 Apr 2005
DOIs
Publication statusPublished - May 2005

Bibliographical note

The definitive version is available at www.blackwell-synergy.com

Keywords

  • audit regulation
  • audit fees
  • corporate governance
  • public sector
  • NHS trusts
  • industry specialisation

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