Determinants of Audit Fees: Evidence from Lebanon

Elgammal, Walid

doi:10.5539/ibr.v5n11p136

Cited by 40 publications

(34 citation statements)

References 35 publications

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“…In return, big international audit firms are more likely to provide assurance to stockholders and reduce agency costs. Consequently, the reputation and status of audit firm can have a great effect on audit fees (Huang et al, 2007;Vermeer et al, 2009;Choi et al, 2010;Verbruggen et al, 2011;Wang et al, 2011;El-Gammal, 2012). In this respect, Hay et al, (2006) argued that higher audit fees are expected when an auditor is recognized to be of superior quality to other firms.…”

Section: Status Of the Audit Firmmentioning

confidence: 99%

Determinants of Audit Fees: Evidence from an Emerging Economy

Hassan¹,

Naser²

2013

IBR

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This study sets out to examine factors influencing audit fees paid by non-financial companies listed on Abu Dhabi Stock Exchange (ADX). Data were collected from the 2011 annual and corporate governance reports published by the Emirati non-financial companies listed on ADX. Backward regression analysis is employed to assess the association between audit fees and certain company's attributes. The findings show a direct relationship between audit fees and each of corporate size, business complexity and audit report lag variables. An inverse relationship has been detected between audit fees and each of industry type and audit committee independence. The findings also revealed that audit fees are not significantly influenced by company's profitability, risk, and status of audit firm.

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Section: Status Of the Audit Firmmentioning

confidence: 99%

Determinants of Audit Fees: Evidence from an Emerging Economy

Hassan¹,

Naser²

2013

IBR

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“…The study's results indicated that the audit firm size ("Big" audit firm vs "non-Big" audit firm) is not statistically influential in determining the amount of audit fees. On the other hand, Walid (2012) concluded that the size of the audit firm is important factor in affecting the amount of external audit fees in Lebanon. Presently, the Big 4 audit firms dominate the audit services market, and consequently, smaller firms face huge obstacles to enter the market of big companies.…”

Section: Auditor Sizementioning

confidence: 99%

Determinants of Audit Fees: Evidence from Jordan

Kikhia¹

2014

AFR

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This study sets out to examine the factors influencing the level of external audit fees paid by firms to their auditors in Jordan. Specific attention is focused on the investigation of the potential influence of auditee size, complexity of client, profitability, client risk, auditor size and auditor tenure on audit fees, by using the Sample which contains 117 non-financial Jordanian companies which listed on Amman Stock Exchang, meet the selection standards and have the applicable and appropriate financial data from 2010 until 2012 (351 observation). The current study strongly reinforces that greatest of prior studies results are also appropriate and applicable to the Jordanian audit market. Moreover, the current study provides further evidence connecting variables such as the auditor tenure effects and auditee risk which have been found to have an inconclusive relationship with the amount of external audit fees in prior studies. However, the auditee size seems to have been the key determinant of external audit fees. Furthermore, financial risk is found to be negatively and significantly associated with the level of external audit fees. On other side, empirical results found that the audit tenure has no significant relationship with audit fees. Finally, the current study is unique because it is the first to empirically examine factors impacting the level of audit fees in Jordan for a total of three years; it revisits the audit fee literature and highlights the important determinants that affect audit fees.

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“…In summary, most of the prior research are based on that, the researcher had an access to the audit fees figure which is normally published in the annual reports of most of the audited companies in developed countries except one study (El-Gammal, 2012) that used a questionnaire to get the required information.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Most of the studies used multivariate regression analysis to investigate the determinants of audit fees except one study (El-Gammal, 2012) that used a questionnaire to get the required information and used different statistical tests rather than multivariate regression analysis. It is very clear from the previous literature that many of the prior studies differ only in sample size, the year of study, the type and number of client-specific characteristics investigated and the country (or countries) on which the studies were carried out.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Consistent with prior studies (Langendijk, 1997;Cameran, 2005;Gonthier & Schatt, 2006;Thinggaard & Kiertzner, 2008;El-Gammal, 2012;Hassan & Naser, 2013, Soyemi & Olowookere, 2013, a questionnaire was developed to explore the determinants of audit fees. It consists of two parts: Part 1 consists of questions asking the participants about their filed work; Part 2 contains 25 questions focusing on the factors that determine the audit fees.…”

Section: The Questionnairementioning

confidence: 99%

See 1 more Smart Citation

The Awareness of External Auditors and the Management of Kuwaiti Listed Companies on Determinants of Audit Fees: An Exploratory Study

Alanezi

Alfraih

2015

IJBM

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This paper explored the factors that influence audit fees determinants in the Kuwait audit market. A questionnaire was distributed to a number of audit firms operating in the Kuwaiti market and Kuwaiti companies listed on the Kuwait Stock Exchange (KSE). The results indicated that all factors show a Likert-scale score of greater than 2.5, suggesting that all the factors included in the questionnaire influence the audit fee determinants. Among the 25 factors included in this study, audit firm brand name, time spent completing a given job and auditors experience were the most important factors influencing audit fees determinants in the Kuwait audit market from audit firm and companies perspective. In contrast, company age, client company location and audit firm location were the least important factors influencing the determinants of audit fee in Kuwait from audit firm and companies perspectives. The results of the t-test revealed that there are significant differences in the mean ranking of some of the factors assumed to determinant the audit fee in Kuwait audit market between the two groups of respondents (audit firms and companies). The findings presented in this study may help professional accounting associations and both audit firms and companies to better understand the factors influencing audit fee determinants in Kuwait audit market.

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Determinants of Audit Fees: Evidence from Lebanon

Cited by 40 publications

References 35 publications

Determinants of Audit Fees: Evidence from an Emerging Economy

Determinants of Audit Fees: Evidence from an Emerging Economy

Determinants of Audit Fees: Evidence from Jordan

The Awareness of External Auditors and the Management of Kuwaiti Listed Companies on Determinants of Audit Fees: An Exploratory Study

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