Audit fee premium for national and local level of industry expertise in Italy

Purpose This study aims to examine whether national industry expertise in Italy is more dominant than local expertise. Prior studies from Australia, USA and UK show that audit fees for experts are priced at a higher premium the level level. These countries have voluntary firm rotation, while has mandatory rotation (MAFR). The authors predict stronger of expertise, better retain transfer Design/methodology/approach compare fee premiums levels, using quantitative (multivariate tests) qualitative (interviews) methodology. Findings Using hand-collected fees, find greater corroborating results with hours. To provide further support, conduct analysis neighboring country does not rotation. data Germany, no different Originality/value present theoretical practical implications, European Union countries, which recently adopted MAFR considering adoption future.