Family firms are found to have better financial reporting quality compared to non-family firms, as indicated by lower audit fees. This suggests that auditors perceive family firms as having lower audit risk. The lower fees are not due to lower litigation risk. Family firms with high audit risk receive less of a fee discount. Additionally, auditors of family firms put in less effort, as shown by shorter audit report lag. These findings support the idea that auditors charge less for family firms because of their superior reporting quality, reducing the need for extensive audit work.