Auditor industry expertise and external audit prices: empirical evidence from Amman Stock Exchange-listed companies

Purpose This study aims to examine the relationship between auditor industry specialization (IS) and audit fees. Design/methodology/approach The authors utilize 2,100 firm-year data of Jordanian companies from 2005 2018. Two conflicting theoretical approaches IS were employed: product differentiation approach, as assessed by market share (MS); shared efficiency evaluated portfolio (PS). Findings Results ordinary least squares (OLS) regression support (shared efficiency) show that employing experts' auditors exerts a very substantial favorable direct impact on fees (negative). Originality/value research contributes new empirical auditing literature examining if does influence businesses' findings offer useful for officials industry's difficulties while refining regulations revising pricing. Additionally, results advice Jordan's regulatory bodies who oversee industry. Arguably, Jordan may be extrapolated other Middle Eastern nations.