Multiple Large Shareholders, Audit Committee Activity and Audit Fee Determination

Penelitian ini bertujuan untuk menganalis pengaruh rotasi audit, audit tenure, fee audit, dan komite audit terhadap kualitas audit. Penelitan ini merupakan penelitian kuantitatif. Sumber data yang digunakan adalah data sekunder dalam bentuk laporan keuangan tahunan perusahaan. Pada penelitian ini, kualitas audit dihitung dengan menggunakan proksi earning suprise bencmark. Populasi yang digunakan dalam penelitian ini adalah perusahaan food and beverage yang terdaftar di Bursa Efek Indonesia tahun 2014-2019. Pengambilan sampel dilakukan dengan metode non probabilitas dengan teknik purosive sampling dan diperoleh 13 perusahaan sebagai sampel dengan 78 data amatan. Metode analisis data yang digunakan adalah analisis regresi logistik dengan menggunakan program Statistical Package For Social Sciences (SPSS) versi 20. Hasil penelitian ini menunjukan bahwa fee audit berpengaruh positif terhadap kualitas audit. Sedangkan rotasi audit, audit tenure, dan komite audit tidak berpengaruh terhadap kualitas audit. This research aimed to analyze the effect of audit rotation, audit tenure, audit fee and audit committee on audit quality. This research is a quantitative type. The data source used is secondary data in the form of the company annual financial report. The earnings surprise benchmark used to measure audit quality. This study's population is all of the food and beverage companies listed in Indonesia Stock Exchange during 2014-2019. The sampling technique used is non- probability sampling with purposive sampling technique and obtained 13 companies with 78 observational data. The data analysis method used is logistic regression analysis using Statistical Package For Social Sciences (SPSS) version 20. The result of this study indicates that the audit fee has a positive effect on audit quality. While audit rotation, audit tenure, and audit committee don't affect audit quality.

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Multiple Large Shareholders, Audit Committee Activity and Audit Fees

SSRN Electronic Journal ◽

10.2139/ssrn.1501806 ◽

2009 ◽

Author(s):

Ismail A. Adelopo ◽

Dr. Kumba Jallow Jallow ◽

Peter Scott

Keyword(s):

Audit Committee ◽

Audit Fees ◽

Large Shareholders

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Estimating Audit Fees Post-SOX

Current Issues in Auditing ◽

10.2308/ciia.2008.2.1.a9 ◽

2008 ◽

Vol 2 (1) ◽

pp. A9-A18 ◽

Cited By ~ 17

Author(s):

Denise E. Dickins ◽

Julia L. Higgs ◽

Terrance R. Skantz

Keyword(s):

Audit Committee ◽

Audit Fees ◽

Structured Interviews ◽

Pricing Models ◽

Estimation Process ◽

Regulatory Changes ◽

Sarbanes Oxley ◽

Pricing Process ◽

Audit Fee ◽

Risk Areas

SYNOPSIS: This article discusses the findings of structured interviews with audit practitioners with a goal of increasing our understanding of the audit fee estimation process and how that process has changed following the passage of the Sarbanes-Oxley Act of 2002 (SOX). The data provide practicing auditors with information that may be helpful in the development or revision of their own audit fee pricing practices. The data are also relevant to audit committee members as they seek to better understand the audit fee pricing process and how potential risk areas or other matters may impact audit fees. Researchers may also find the results of the interviews useful for the enhancement of audit fee pricing models, whether to more-closely align estimation models with the reported fee estimation process, or to revise models to reflect post-SOX economic and regulatory changes.

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Effektivitas Komite Audit, Dewan Komisaris Independen dan Biaya Audit

E-Jurnal Akuntansi ◽

10.24843/eja.2021.v31.i03.p11 ◽

2021 ◽

Vol 31 (3) ◽

pp. 667

Author(s):

Fitri Nurjanah ◽

Akhmad Imam Amrozi

Keyword(s):

Linear Regression ◽

Audit Committee ◽

Audit Quality ◽

Stock Exchange ◽

Sampling Technique ◽

Testing Hypothesis ◽

Purposive Sampling ◽

Audit Fee ◽

Result Show ◽

Significant Model

The purpose of this study is to analyze the effect of effectiveness of audit committee and independence board of commissioner on audit fee. This research uses samples of Non-financial companies in Indonesia Stock Exchange (IDX) in 2015-2018. The sampling technique used purposive sampling. The total number of companies used as research samples is 584 companies. Using tools SPSS 20 and testing hypothesis using linear regression. The F test indicates a stable and significant model. R square is 49,4%The result show independence board of commissioner and Effectiveness of audit committee can positively significant effect on audit fee because board of commissioners and audit committee wants a higher audit quality from the auditor. Keywords: Board Of Commissioners; Effectiveness Of Audit Committee; Audit Fee.

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The Analysis of Factors Affecting the Amount of Audit Fee with Type of Public Accountant Office as a Moderating Variable in Manufacturing Companies Listed on the IDX for the 2013-2019 Period

International Journal of Research and Review ◽

10.52403/ijrr.20220114 ◽

2022 ◽

Vol 9 (1) ◽

pp. 89-99

Author(s):

Nova Kharlinda ◽

Iskandar Muda ◽

Keulana Erwin

Keyword(s):

Firm Size ◽

Audit Committee ◽

Stock Exchange ◽

Audit Fees ◽

Manufacturing Companies ◽

Audit Report ◽

Factors Affecting ◽

Analysis Technique ◽

Audit Fee ◽

Public Accountant

This study analyzes the factors influencing the number of audit fees in manufacturing companies listed on the Indonesia Stock Exchange in 2013 – 2019. The number of audit fees depends on several factors that influence it. The Indonesian Institute of Certified Public Accountants has determined the minimum standard of audit fees charged to auditee companies but does not include a substantial total cost and tends to fluctuate and vary. This study uses the audit committee, audit report lag, and firm size as independent variables, the type of public accounting firm as the moderating variable, and audit fee as the dependent variable. This study uses causal associative as the research design. The data was collected by collecting data on the company's financial statements from 2013 to 2019. The study population was 176 manufacturing companies whose samples were taken using the purposive sampling method. The number of research samples was 20, with 140 observations. The data analysis technique uses Studio R's panel analysis regression model as the test tool. The results showed that the Audit Committee, audit report lag, and firm size each had a significant positive effect on the audit fee's value and jointly had a significant impact on the audit fee. The type of public accountant office is not a moderating variable. Keywords: audit fee, audit committee, audit report lag, firm size, public accountant office.

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Audit committee effectiveness and the audit fee

European Accounting Review ◽

10.1080/09638189600000012 ◽

1996 ◽

Vol 5 (2) ◽

pp. 177-198 ◽

Cited By ~ 81

Author(s):

Paul Collier ◽

Alan Gregory

Keyword(s):

Audit Committee ◽

Audit Fee

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The Determinants of External Auditors’ Independence for Politically Connected Firms in Malaysia

e-Academia Journal ◽

10.24191/e-aj.v10i1.13355 ◽

2021 ◽

Vol 10 (1) ◽

Author(s):

Norziaton I.K ◽

Nurul Nadhirah Muharam

Keyword(s):

Audit Committee ◽

Secondary Data ◽

Auditor Independence ◽

Annual Reports ◽

Political Connection ◽

External Auditors ◽

The Past ◽

Audit Fee

The auditing profession is a major concern for stakeholders and has been in a quagmire for the past years. To overcome the concern, client firms must take the initiative to assure that the management does not put pressure on the external auditors. Therefore, firms need to take part in positively influencing external auditors‟ independence to reduce the complexity of audit procedures, and consequently, improve external auditors‟ independence. Thus, the determinants of factors are needed to assure and maintain the independence of the external auditors at any time to perform their audit work. Hence, the main objective of this study is to examine the determinants of external auditors‟ independence among politically connected firms in Malaysia. The determinants are classified into two which are, first, auditor attributes namely, audit tenure and non-audit fee, and second, audit committee characteristics which consist of audit committee‟s independence and audit committee‟s diligence. Four hypotheses were developed and tested using a total of 46 sample firms from 2014 to 2018 with 230 firm-year observations. This study used secondary data from which the information was obtained from annual reports and DataStream. The results reveal that non-audit fee and audit committee‟s diligence influenced external auditors‟ independence, whereas audit tenure and audit committee‟s independence did not. Altogether, this study has provided useful information and implications for the professional bodies and Bursa Malaysia to help strengthen the principles of auditors‟ independence in politically connected firms. Keywords: Auditor Attributes, Audit Committee, Auditor Independence, Political Connection

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Audit Committee Effectiveness and Audit Fee among Listed Deposit Money Banks in Nigeria

Asian Journal of Economics Business and Accounting ◽

10.9734/ajeba/2020/v20i430329 ◽

2020 ◽

pp. 1-14

Author(s):

Abdulrasaq Mustapha ◽

Abdulrauf O. Isiaka ◽

Kudirat A. Babatunde

Keyword(s):

Audit Committee ◽

Banking Sector ◽

Audit Quality ◽

Random Effect ◽

Gender Diversity ◽

Audit Committees ◽

Annual Reports ◽

P Value ◽

Ex Post ◽

Audit Fee

The persistent cases of corporate accounting scandals which have rocked the Nigerian banking sector in spite of auditor certification of financial statements as free from material error have raised concern not only on the effectiveness of audit committees but also on audit services despite the huge amount charged on their clients. Hence, this study examined the effect of audit committee effectiveness on audit fee of listed deposit money banks in Nigeria. Using an ex-post facto research design, the data sourced through the annual reports of twelve (12) banks for the period between 2012 and 2018 were analysed using random-effect regression analysis. The result of the study revealed that audit committee effectiveness proxy with audit committee audit committee expertise (t-value =3.22 & p-value = 0.000), audit committee diligence (t-value = 3.57, & p-value = 0.000) and audit committee gender diversity (t-value = 3.85 & p-value =0.000) has significant positive effect on audit fee of listed deposit money banks in Nigeria. This implies that an effective audit committee would demand for high audit quality service from the auditor, thereby increasing the audit efforts and time which subsequently result to higher audit fee. The study concluded that an effective audit committee would demand high audit service from the external auditor thereby ensuring that the financial statement published is relevant and of faithful representation.

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Ownership concentration, political connection and audit fees: Some evidence from Malaysian capital market

Corporate Ownership and Control ◽

10.22495/cocv9i2c4art2 ◽

2012 ◽

Vol 9 (2) ◽

pp. 400-409

Author(s):

Balachandran Muniandy ◽

Muhammad Jahangir Ali

Keyword(s):

Audit Committee ◽

Stock Exchange ◽

Audit Fees ◽

Ownership Concentration ◽

Political Connection ◽

Cross Sectional ◽

Share Ownership ◽

Audit Fee ◽

The Relationship ◽

High Share

The purpose of our study is to examine how share ownership concentration and political connection determine audit fees in Malaysia. These two determinants, ownership concentration and political connection, are very important, especially, in the context of Malaysia where many companies have very high share ownership concentration and are politically connected. We examine 162 companies listed on the Malaysian Stock Exchange and employ cross-sectional regression analysis to determine the relationship between ownership concentration, political connection and audit fees. We observe that highly concentrated share ownership firms are able to influence priorities of the board to focus on the provision of resources rather than monitoring. Our results suggest a negative association between audit fees and politically connected firms. We also find that higher proportion of independent directors on the audit committee of politically connected firms demand auditors to put additional efforts on the politically connected firms which leads to an increment in the audit fee charged. This suggests that regulators should encourage companies to form an effective audit committee for high quality audit services to ensure that firm is able to minimize the risk exposure. The findings of the study are appealing to literature of political connection and audit fees.

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Original and Revised Auditor Fee Data

Current Issues in Auditing ◽

10.2308/ciia-50015 ◽

2011 ◽

Vol 5 (1) ◽

pp. A54-A69 ◽

Cited By ~ 5

Author(s):

Rebecca L. Rosner ◽

Ariel Markelevich

Keyword(s):

Audit Committee ◽

Audit Fees ◽

Securities And Exchange Commission ◽

Accounting Firms ◽

Reporting Requirements ◽

Disclosure Requirements ◽

Big 4 ◽

Audit Fee ◽

Nonaudit Services ◽

Auditor Fees

SUMMARY: A significant number of companies report revised auditor fees (audit, nonaudit services, and total) in subsequent Securities and Exchange Commission (SEC) filings. We find that, on average, revised audit fees and total fees are significantly higher, and nonaudit services (NAS) fees are significantly lower than the originally reported fees. The occurrence of fee revisions decreases significantly after 2006 and does not appear to be concentrated in specific industries. In addition, we find that larger clients are more likely to report fee revisions, while clients of Big 4 auditors and clients that file late are less likely to report fee revisions. We also examine the magnitude of upward and downward fee revisions. The fee revisions likely result from the changes in the SEC's fee disclosure reporting requirements from 2001 to 2003, as well as ambiguity related to the new requirements. In addition, they also may stem from estimated billing by accounting firms prior to filing with the SEC, followed by more precise billing after the filing. Our objective is to alert managers and practitioners to the subtleties of the fee disclosure requirements relative to fees billed/paid, the disparity in fee reporting, and the necessity for reporting revised fees if appropriate. We advise audit committee members, analysts, researchers, and other users of audit fee data to use revised fee numbers and exercise caution when using originally reported fees, as they often are revised.

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