Exploratory insights into audit fee increases: A field study into board member perceptions of auditor pricing practices

Audit research documents audit fee discounts associated with an auditor change, and that fees revert to average levels within a few years. This paper provides exploratory insights into the perceptions of board members vis-à-vis pricing practices used by auditors achieve increases. In semi-structured interviews 12 respondents (10 two managers), we elicit on initial discounts, client reactions these practices. The key findings indicate combine First, they negotiate higher prior annual cycle, citing changes in structure/size institutional environment. Second, charge than negotiated after completing (‘extra-billing’), justifications such as chargeable hour overruns warranting additional work. Potentially, have negative implications for quality damage auditor–client relationship.