Investigation of the Relationship between Customer-Base Concentration and Audit Fees

Today in the business environment, customer satisfaction plays an important role in achieving organizations to their goals. But it can not be said that all customers are equally involved in the success of the organization, and the point that it emphasizes in customer relationship management studies is the issue customer-base concentration. Therefore, this research has been conducted with the aim of investigating the relationship between the customer-base concentration and audit fees of the listed companies on Tehran Stock Exchange (TSE). For this purpose, 60 companies during the period from 2010 to 2015 were analyzed using panel data with effects approach.The results indicated that the customer-base concentration has significant negative relation with audit fees. According to the obtained results it can be stated that customer-base concentration indus increasing production coordination, better inventory management and enhancing information sharing along the supply chain. Accordingly, companies that are concentrated customer, to achieve the benefits of joint efforts marketing and advertisements and ultimately reflected the effective reduction of sale costs. these factors can be reduced audit risk; and therefore the auditor’s fee requested will be reduced.