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

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.

scholarly journals Pengaruh Fee Audit, Tenure Audit, Rotasi Audit Terhadap Kualitas Audit dengan Komite Audit Sebagai Variabel Moderasi pada Perusahaan Sektor Keuangan yang Terdaftar di Bursa Efek Indonesia

Jurnal EBI ◽  
2021 ◽  
Vol 3 (1) ◽  
Author(s):  
Nur Isra Laili
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Empirical Studies ◽  
Sampling Technique ◽  
Financial Sector ◽  
Audit Fees ◽  
Quality Audit ◽  
Insignificant Effect ◽  
The Relationship

This test aims to test the effect of audit fees, audit tenure, audit rotation on audit quality with the audit committee as a moderating variable (empirical studies on financial sector companies listed on the Indonesia stock exchange for the financial sector 2012-2016) The population in this study was 71 companies. The sampling technique used was purposive sampling and the number of samples was 23 companies. The model used in this study is Moderated Regression Analysis using panel data and processed using the Eviews 9.5 application. Results: Audit fees have a positive and insignificant effect on audit quality, audit tenure has a negative and insignificant effect on audit quality, audit rotation has a positive and significant effect. on the quality of the audit. The audit committee has a positive and significant effect on the relationship between audit fees and audit quality, the audit committee has a negative and insignificant effect on the relationship between audit tenure and audit quality, the audit committee has a positive and insignificant effect on the relationship between audit rotation and audit quality. This shows that the audit committee only mediates the relationship between the audit fee variable and audit quality.

scholarly journals 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

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.

scholarly journals The effect of political connection and effectiveness of audit committee on audit fee

2019 ◽  
Vol 9 (2) ◽  
pp. 227
Author(s):  
Fitri Nurjanah ◽  
Erina Sudaryati
Keyword(s):  
Audit Committee ◽  
Sampling Method ◽  
Audit Quality ◽  
Stock Exchange ◽  
Political Connection ◽  
Significant Positive Effect ◽  
Research Model ◽  
Significance Level ◽  
Audit Fee ◽  
Positive Effect

This study analyzes the effect of political connection and effectiveness of audit committee on audit fee. This study uses the sample of non-financial companies listed on the Indonesia Stock Exchange (IDX) in 2015-2017. They were take using a purposive sampling method. The total number of companies is 444 companies. The data were analyzed using SPSS 20 and the hypothesis testing was done using linear regression with a significance level of 5%. The F test indicates that the research model is stable and significant. The value of R square is 38.4%, indicating that there are other variables that can affect the model by 61.6%. The results of this study show that political connection has a significant positive effect on audit fee and the effectiveness of audit committee also has a significant positive effect on audit fee because audit committee wants a higher audit quality from the auditor.

scholarly journals Political Connection And Gender Diversity To Audit Fees

2021 ◽  
Vol 12 (4) ◽  
pp. 609-614
Author(s):  
Pedi Riswandi, Et. al.
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Annual Report ◽  
Gender Diversity ◽  
Sampling Technique ◽  
Audit Fees ◽  
Political Connection ◽  
Audit Fee ◽  
Public Accountants ◽  
Ceo Gender

Introduction: Audit fee is one of the factors that results in reduced audit quality. Audit fees are rewards provided by companies to public accountants for audit services provided. Purpose:  this study to investigate political connection and CEO gender affect the size of audit fee paid to public accountants by the company. Method: This study uses secondary data in the form of the annual report of company going public in 2015-2018 and using a purposive sampling technique with a total of 407 company data companies. The variables used in this study are audit fee as the dependent variable while for the independent variables used in this study are political connection, CEO gender. Analysis techniques data used in this study are multiple linier regressions with classical assumption test Finding: The results show that political connections can increase audit fee Originality: the results show that CEO gender has no effect on audit fees Limitation: Disclosure of audit fees in the annual report is still voluntary, so there are still many companies that do not meet the sample criteria. The variable used is limited to the gender of CEO Directors without involving the gender of the board of commissioners and audit committee.

scholarly journals Transaksi Pihak Terkait atas Biaya Audit: Peran Efektivitas Komite Audit

2020 ◽  
Vol 30 (10) ◽  
pp. 2619
Author(s):  
Dian Kristiyani
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Audit Fees ◽  
Significant Positive Effect ◽  
Related Party Transaction ◽  
Audit Fee ◽  
Negative Effect ◽  
Positive Effect ◽  
Significant Model

The purpose of this study is to analyze the effect of related party transaction and the effectiveness of audit committee on audit fee. This research uses samples a  manufacturing company in Indonesia Stock Exchange (IDX) in 2014-2018. The sampling technique used purposive sampling. The total number of companies used as research samples is 118 companies. Using tools SPSS 20 and testing hypothesis using linear regression. The F test indicates a stable and significant model. R square is 58,7 percent. The results show that related party transactions have a significant positive effect and the effectiveness of the audit committee has a significant negative effect on audit fees. Keywords: Related Party Transaction; Effectiveness Of Audit Committee; Audit Fee.

DETERMINAN FEE AUDIT

2015 ◽  
Vol 10 (1) ◽  
pp. 23
Author(s):  
Baldric Siregar ◽  
Mutiara Indah Lestari
Keyword(s):  
Audit Committee ◽  
Stock Exchange ◽  
Internal Audit ◽  
Financial Statements ◽  
Audit Fees ◽  
Positive Influence ◽  
Financial Condition ◽  
Main Requirement ◽  
Audit Fee ◽  
A Company

ABSTRACT This study aims to examine the factors that affect audit fees. Factors examined include  factors derived from the entity (client) and the factors derived from the auditor. The sample of this research is that companies listed in Indonesia Stock Exchange for the period 2007- 2008. The existence of audit fee disclosure in the financial statements or annual report is the main requirement for a company used as a sample. The hypotheses are tested using multiple regression. Empirical evidence shows that the size and complexity of the entity have positive influences on audit fees. Both of these factors are factors derived from the entity. In addition, the audit reputation has a positive influence on audit fees. This audit reputation is a factor derived from the auditor. Other factors are tested as risk, internal audit, audit committee, financial condition, and audit tenure have no influence on the audit fee. Keywords: audit fee, client size, risk, entitas complexity, auditor reputation, internal audit, audit committee, audit tenure, client financial condition. ABSTRAK Penelitian ini bertujuan untuk menguji faktor-faktor yang mempengaruhi biaya audit. Faktor yang diteliti meliputi faktor yang berasal dari entitas (klien) dan faktor-faktor yang berasal dari auditor. Sampel dari penelitian ini adalah perusahaan yang terdaftar di Bursa Efek Indonesia untuk periode 2007-2008. Adanya pengungkapan biaya audit dalam laporan keuangan atau laporan tahunan adalah syarat utama untuk sebuah perusahaan yang digunakan sebagai sampel. Hipotesis diuji dengan menggunakan regresi berganda. Bukti empiris menunjukkan bahwa ukuran dan kompleksitas entitas memiliki pengaruh positif pada biaya audit. Kedua faktor ini adalah faktor-faktor yang berasal dari entitas. Selain itu, reputasi audit memiliki pengaruh positif pada biaya audit. Reputasi Audit ini merupakan faktor yang berasal dari auditor. Faktor-faktor lain diuji sebagai risiko, audit internal, komite audit, kondisi keuangan, dan masa jabatan audit tidak memiliki pengaruh pada biaya audit. Kata kunci: biaya audit, ukuran klien, risiko, kompleksitas entitas, reputasi auditor, audit internal, komite audit, masa jabatan audit, kondisi keuangan klien

scholarly journals Assessment of Factors Affecting Audit Quality: “A Study of Selected Companies Listed on the Ghana Stock Exchange”

2019 ◽  
Vol 9 (2) ◽  
pp. 436
Author(s):  
John Kwaku Mensah Mawutor ◽  
Borketey-La Francis B ◽  
Asamoah Douglas Obeng
Keyword(s):  
Audit Committee ◽  
Audit Quality ◽  
Negative Impact ◽  
Stock Exchange ◽  
Audit Fees ◽  
Audit Committees ◽  
Cross Sectional ◽  
Factors Affecting ◽  
Ghana Stock Exchange ◽  
The Impact

This study sought to establish the factors affecting audit quality in listed companies in Ghana. A cross-sectional method was used in the analysis in which a linear regression model was also used to establish the impact of the independent variables namely; auditor size, the existence of audit committee and the logarithm of the auditor fees on the independent variable audit quality. The logarithm of audit fees was taken to normalize the data. The dependent variable “leverage ratio” (total debts divided by total assets of the company) used to measure debt pressure by the companies and also used as a proxy for the audit quality because high debts in relation to company assets can lead to bankruptcy. Twenty- five (25) companies listed on the Ghana Stock exchange were used as the sample of the study. The results of the analysis indicated that logarithm of audit fees, existence of audit committee, and auditor size were all significant in influencing the leverage of the companies and thus audit quality. The size of audit firm had a negative impact on audit quality, while the companies that do not have audit committees are more likely to have poor audit quality. The logarithm of audit fees was positively related with the audit quality. It is recommended that audit fees should be regulated by The Institute of Chartered Accountants Ghana (ICAG) as well as taking action against audit companies which do not adhere to auditing standards and the officials of companies who are involved in misstating the financial statements and other financial records with the intention of concealing the true and actual facts of the financial position of the company.

IFRS Adoption and Audit Delay: The Role of Shareholders in the Audit Committee

2018 ◽  
Vol 8 (1) ◽  
pp. 325
Author(s):  
Ishaq Ahmed Mohammed ◽  
Ayoib Che-Ahmad ◽  
Mazrah Malek
Keyword(s):  
Audit Committee ◽  
Unobserved Heterogeneity ◽  
Value Relevance ◽  
Stock Exchange ◽  
Delay Model ◽  
Corporate Reporting ◽  
Ifrs Adoption ◽  
The Difference ◽  
The Relationship

This study examined the relationship between audit delay after IFRS adoption and the role of shareholders in the audit committee as well as testing the difference of pre-and post IFRS adoption periods. A sample of 101 firms with 505 firm-year observations over five year period for firms listed on the Nigeria Stock Exchange was employed for the study, utilizing data from the annual report and accounts of the sample firms. Generalized Methods of Moment (GMM) estimation was used to check the effects of unobserved heterogeneity in audit delay model, while the test of difference in R2 value for pre-and post-adoption periods was determined using Cramer’s Z-statistics. Findings indicate that audit report lag is faster with shareholders in the audit committee. The study proved that brand named auditors such as Big4 can significantly perform faster audit task than non-Big4 firms in IFRS regime. The importance of the study’s findings demonstrates statistical inference on value relevance increase based on the unique IFRS adoption in Nigeria. Thus, regulators should consider increasing the tenure of shareholders in the audit committee to enable them to become more familiar with the corporate reporting under IFRS regime.

Relationship between corporate governance and audit switching: Iranian evidence

2017 ◽  
Vol 59 (5) ◽  
pp. 673-686
Author(s):  
Mahdi Salehi ◽  
Ali Asgar Alinya
Keyword(s):  
Corporate Governance ◽  
Design Methodology ◽  
Stock Exchange ◽  
Listed Companies ◽  
Panel Analysis ◽  
Cross Sectional ◽  
Content Type ◽  
Effective Factors ◽  
Dependent Variables ◽  
The Relationship

Purpose This paper aims to investigate the relationship between corporate governance and auditors switching of listed companies on the Tehran Stock Exchange. Design/methodology/approach To achieve the objectives of this study, 12 hypotheses developed which and tests the relationship between corporate governance and selecting and switching auditors in Iran during 2008-20014 by selecting 116 listed companies on the Tehran Stock Exchange. To test the hypotheses, the cross-sectional time-series nature of research variables data, panel analysis is used. Also, to investigate the relationship between independent and dependent variables in each year, the logistic regression is used. Findings The results of the study indicate that there is a weak relationship between corporate governance auditors switching. Therefore, it could be concluded that there are some other effective factors on which selecting and switching auditors in studied companies are more dependent. Originality/value The current study is almost the first study which has been conducted in Iran, so the results of the study may be beneficial to the Iranian conditions as well as other developing countries.

Sign in / Sign up

Export Citation Format

Share Document