Effect of earnings quality and board independence on audit fees: The case of the Amman Stock Exchange

Abstract

The impact of earnings management and audit independence on audit fees for businesses listed on the Amman Stock Exchange (ASE) is analyzed in-depth in this research. The institutional framework with severe earnings management and inadequate corporate governance tools served as the technique for this test. The findings, which are based on a sample of 50 companies during the years 2018–2022, demonstrate a favorable correlation between auditing fees and board independence. Additionally, the results show that for small-sized enterprises, audit fees, and earnings management have a favorable link. All of the findings point to a possible strong correlation between audit fees and earnings management as well as a relationship between higher demand for audit services and successful governance.