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If, as result of strict legislation, a firm is below the threshold it will pay above optimal auditing fees. In this case, the firm should make a single, immediate improvement to reach the optimal level. Additionally, only firms whose credibility is close to the threshold are affected if government increases legal scrutiny. More credible firms are not adversely affected by the stricter legal climate.<\/jats:p>","DOI":"10.4018\/ijsds.2018070106","type":"journal-article","created":{"date-parts":[[2018,6,25]],"date-time":"2018-06-25T14:43:36Z","timestamp":1529937816000},"page":"113-126","source":"Crossref","is-referenced-by-count":0,"title":["Principal-Agent Analysis on How Legal Risks Affect Audit Fees and Quality"],"prefix":"10.4018","volume":"9","author":[{"given":"Yahel","family":"Giat","sequence":"first","affiliation":[{"name":"Jerusalem College of Technology, Jerusalem, Israel"}]}],"member":"2432","reference":[{"key":"IJSDS.2018070106-0","doi-asserted-by":"publisher","DOI":"10.1142\/S2010139216500142"},{"key":"IJSDS.2018070106-1","doi-asserted-by":"publisher","DOI":"10.2307\/2490884"},{"key":"IJSDS.2018070106-2","doi-asserted-by":"publisher","DOI":"10.4018\/IJSDS.2017070104"},{"key":"IJSDS.2018070106-3","doi-asserted-by":"publisher","DOI":"10.1108\/10309610910975306"},{"key":"IJSDS.2018070106-4","doi-asserted-by":"publisher","DOI":"10.2308\/ajpt-10294"},{"key":"IJSDS.2018070106-5","doi-asserted-by":"publisher","DOI":"10.1506\/4A05-11UF-1MQA-57JE"},{"key":"IJSDS.2018070106-6","doi-asserted-by":"publisher","DOI":"10.1007\/s11142-004-6340-x"},{"key":"IJSDS.2018070106-7","doi-asserted-by":"publisher","DOI":"10.1111\/1911-3846.12247"},{"key":"IJSDS.2018070106-8","doi-asserted-by":"publisher","DOI":"10.1111\/abac.12051"},{"key":"IJSDS.2018070106-9","doi-asserted-by":"publisher","DOI":"10.1080\/00014788.2015.1133275"},{"key":"IJSDS.2018070106-10","doi-asserted-by":"publisher","DOI":"10.2308\/accr.2007.82.3.621"},{"key":"IJSDS.2018070106-11","doi-asserted-by":"publisher","DOI":"10.4018\/IJISSCM.2017010101"},{"key":"IJSDS.2018070106-12","doi-asserted-by":"crossref","unstructured":"Cassell, C. 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