Bank audit fee pressure during the financial crisis

Abstract

This study examines the pressure on bank audit fees during the height of the financial crisis. I employ a prior year benchmark audit fee method and compare it to the actual audit fee to determine the amount of fee pressure applied in a year. Results show a significant amount of fee pressure exerted upon bank auditors during 2008, more so than that found in studies of other industries. This study also investigates a bank specific fee model during the crisis finding differences in determinants of fees for those banks that did apply fee pressure.