The Effects of Client Characteristics on Auditor Litigation Risk Judgments, Required Audit Evidence, and Recommended Audit Fees.

Key Points

• This research aims to understand how various client characteristics influence auditor judgments related to litigation risk, evidence requirements, and fee recommendations.
• Examined client characteristics such as financial condition and market value.
• Analyzed the relationship between client traits and auditor litigation risk judgments.
• Included a summary table of dependent and independent variables.
• Identified significant effects of client financial condition on litigation risk judgments.
• Found correlations between client growth rates and required audit evidence.
• Noted market value's influence on determining audit fees.