THE DETERMINANTS OF AUDIT FEES
Keywords:
Audit Fees, Auditing, Corporate governanceAbstract
Auditing is a tool that helps to detect financial reporting information in order to create confidence to stakeholders. At present, a large number of authorized auditors have occurred in the event of a competition in order to receive the auditing work, affecting the quality of auditing, leading to the review of these redundant roles. To show those who have seen the importance of the accounting profession, and appoint the auditors, focusing on the quality of the auditors rather than considering just an audit fee. This research aims to study the factors influencing the audit fees of the company listed on the Stock Exchange of Thailand. (SET) In this research using content analysis from the annual report, as well as analyzing the relationship between variables using multiple regression analysis. The study found that the size factor of the company, number of subsidiary companies, the frequency of meetings of the Audit committee and the fees for services other than the audit fee is positively influenced on the assignment of the auditing fees. The gender of the Chief Executive Officer has a negative influence on the assignment of the auditing fees, but other factors include the risk of the company, profitability of the company, the independence and expertise of the Audit Committee, age and working experience of the Chief Executive Officer has no influence on the audit fees.
References
กาญจนา ประกอบแสง, และพัทธนันท์ เพชรเชิดชู. (2560). กลไกการกำกับดูแลกิจการ ความสัมพันธ์ทางการเมืองกับคุณภาพกำไร. วารสารวิชาชีพบัญชี, 31(99), 1-15.
Abbott, L. J., Parker, S., Peters, G. F., & Raghunandan, K. (2003a). The association between audit committee characteristics and audit fees. Auditing: A Journal of Practice & Theory, 22(2), 17-32.
Abbott, L. J., Parker, S., Peters, G. F., & Raghunandan, K. (2003b). An empirical investigation of audit fees, nonaudit fees, and audit committees. Contemporary Accounting Research, 20(2), 215-234.
Brick, I. E., Palmon, O., & Wald, J. K. (2006). CEO compensation, director compensation, and firm performance: Evidence of cronyism?. Journal of Corporate Finance, 12(3), 403-423.
Bushman, R. M., & Smith, A. J. (2001). Financial accounting information and corporate governance. Journal of accounting and Economics, 32(1), 237-333.
Carcello, J. V., & Neal, T. L. (2000). Audit committee composition and auditor reporting. The Accounting Review, 75(4), 453-467.
Carcello, J. V., Hermanson, D. R., & Neal, T. L. (2002). Disclosures in audit committee charters and reports. Accounting Horizons, 16(4), 291-304.
Chan, P., Ezzamel, M., & Gwilliam, D. (1993). Determinants of audit fees for quoted UK companies. Journal of Business Finance & Accounting, 20(6), 765-786.
Choi, J. H., Kim, C., Kim, J. B., & Zang, Y. (2010). Audit office size, audit quality, and audit pricing. Auditing: A Journal of Practice & Theory, 29(1), 73-97.
Dee, C. C., Lulseged, A. A., & Nowlin, T. S. (2002). Earnings quality and auditor independence: an examination using non-audit fee data. Available at SSRN 304185.
Francis, J. R., & Simon, D. T. (1987). A test of audit pricing in the small-client segment of the US audit market. Accounting Review, 62(1), 145-157.
Francis, J. R., & Stokes, D. J. (1986). Audit prices, product differentiation, and scale economies: further evidence from the Australian market. Journal of Accounting Research, 24(2), 383-393.
Gonthier-Besacier, N., & Schatt, A. (2007). Determinants of audit fees for French quoted firms. Managerial Auditing Journal, 22(2), 139-160.
Gul, F. A., C. J. P. Chen, & J. S. L. Tsui. (2003). Discretionary accounting accruals, managers’ incentives, and audit fees. Contemporary Accounting Research, 20(3), 441-464.
Hay, D. C., Knechel, W. R., & Wong, N. (2006). Audit fees: A meta-analysis of the effect of supply and demand attributes. Contemporary Accounting Research, 23(1), 141-191.
Joshi, P. L., & Al-Bastaki, H. (2000). Determinants of audit fees: Evidence from the companies listed in Bahrain. International Journal of Auditing, 4(2), 129-138.
Mitra, S., Hossain, M., & Deis, D. R. (2007). The empirical relationship between ownership characteristics and audit fees. Review of Quantitative Finance and Accounting, 28(3), 257-285.
Naser, K., & Nuseibeh, R. (2008). Determinants of audit fees: Empirical evidence from an emerging economy. International Journal of Commerce and Management, 17(3), 239-254.
Palmrose, Z. V. (1986a). Audit fees and auditor size: Further evidence. Journal of Accounting Research, 24(1), 97-110.
Palmrose, Z. V. (1988). 1987 Competitive manuscript co-winner: An analysis of auditor litigation and audit service quality. Accounting review, 63(1), 55-73.
Peel, M. J., & Clatworthy, M. A. (2001). The relationship between governance structure and audit fees pre-Cadbury: Some empirical findings. Corporate Governance: An International Review, 9(4), 286-297
Downloads
Published
How to Cite
Issue
Section
License
Content and information of the article published at Suthiparithat Journal are based on the sole opinions and responsibility of author(s) only. Neither the editorial board involve in......
