Abstract

This paper examines the audit fees for initial audit engagements after the H3C inspection in French context through 2008 to 2015. According to the theory, we suppose that audit fees increase after the start of the H3C inspection program. To test our main hypothesis, we use the methodology of the (Desir, Casterella, & Kokina, 2013) and (Huang, Raghunandan, & Rama, 2009) reported on the United States context. Our empirical results demonstrate that the audit fees in French context for the initial audit engagement decreased after the start of the H3C inspection program. Contrary to our prediction, the massive disciplinary sanction associated to the audit fees and the less level of the audit market concentration in France, are two determinants that explain the decrease of the audit fees in this country.

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