This study examines the relation between excess auditor remuneration and the implied required rate of return (IRR hereafter) on equity capital in global markets. We conjecture that when auditor remuneration is excessively large, investors may perceive the auditor to be economically bonded to the client, leading to a lack of independence. This perceived lack of independence increases the information risk associated with the credibility of financial statements, thereby increasing IRR. Consistent with this notion, we find that IRR is increasing in excess auditor *Rotman School of Management

for increasing repulsive interactions pro-vides strong evidence for a phase transition to a ferromagnetic state. Our observations imply that itinerant ferromagnetism of delocalized fermions is possible without lattice and band structure, and our data validate the most basic model for ferromagnetism introduced