The study investigates the effect of the 2016 EU Audit Reform on audit fees and audit quality in Austria. The reform aimed to enhance audit quality through increased auditor independence and market competition. This study replicates and extends the analysis by Willekens et al. (2019), focusing on the Austrian market and covering a longer period: 2010–2022. The findings indicate that the reform led to a slight decrease in market concentration and a more even distribution of market shares among the Big4 audit firms. The number of auditors in the public interest entities (PIEs) market, however, decreased. Contrary to the trend in the EU identified by Willekens et al. (2019), we observed a significant negative effect of the audit reform indicator on audit fees in Austria following the reform. This is likely due to high competition and specific market conditions. Overall, we found a negative effect of the reform dummy, but the results for the individual reform measures were mixed. Using proxies, such as discretionary accruals and restatements, the study found mixed results regarding the reform’s effect on audit quality. The introduction of a fee cap for non-audit services led to a reduction in these fees, potentially enhancing auditor independence. The study highlights the unique characteristics of the Austrian audit market and suggests that the aims of the EU Audit Reform were partially met in Austria.
