Chen, J.J., Huang, L., Xiao, J.Z. et al. (1 more author) (2025) Do auditors charge clients with higher audit fees for blockchain investments? Journal of International Accounting, Auditing and Taxation, 59. 100707. ISSN: 1061-9518
Abstract
This study examines the impact of clients’ blockchain investments on audit fees. Using a sample of A-share Chinese listed firms spanning the 2015–2019 period, we find a positive association between blockchain investments and audit fees, which is stronger for client firms that have adopted blockchain than those that have only invested in this technology. Our channel analysis further reveals that higher audit fees stem from the increase in client firms’ audit risk and the greater effort in audit planning and execution by the auditors. The positive association between blockchain investments and audit fees is attenuated by audit firms’ extensive information technology (IT) experience and is intensified by considerable external attention to clients’ blockchain activities. Our results are robust to a battery of endogeneity and other robustness checks. This research casts new light on the interactions between disruptive technologies and external auditor practices, as reflected in audit fees.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2025 The Author(s). This is an open access article under the terms of the Creative Commons Attribution License (CC-BY 4.0), which permits unrestricted use, distribution and reproduction in any medium, provided the original work is properly cited. |
Keywords: | Blockchain, Audit fees, Audit risk, Audit effort |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Management Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 20 Dec 2024 10:31 |
Last Modified: | 05 Aug 2025 11:02 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.intaccaudtax.2025.100707 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:221031 |