| Budget Amount *help |
¥3,900,000 (Direct Cost: ¥3,000,000、Indirect Cost: ¥900,000)
Fiscal Year 2016: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000)
Fiscal Year 2015: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000)
Fiscal Year 2014: ¥1,040,000 (Direct Cost: ¥800,000、Indirect Cost: ¥240,000)
Fiscal Year 2013: ¥780,000 (Direct Cost: ¥600,000、Indirect Cost: ¥180,000)
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| Outline of Final Research Achievements |
In this research project, I investigate the economic function of financial statement auditing. The principle findings are as follows: (1) firms exert their bargaining power against auditors so that they can pay lower and sticky audit fees, which effectively leads to decreasing audit quality, and (2) private companies, those who are not mandatory required to have their financial statements audited, receive benefits in the form of a decrease in interest rate from the bank with having a longer transaction duration, when they voluntarily purchase assurance from an auditor. These results indicate that auditing has an economic value in the Japanese market, whereas relatively lower bargaining power of auditors against their clients would jeopardize audit quality.
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