Audit Pricing In Australia 1980-1989

During the 1980s, auditors engaged in price competition which resulted in a marked decline in relative audit fees. Preliminary evidence suggests that, on average, larger companies experienced a saving of 40 per cent. Given the increases in overall audit costs during the 1980s, it is arguable that the savings can be explained by increases in efficiency. More research is required to determine whether the explanation lies with such cost savings or in a decline in audit quality.