Factors Influencing Audit Expense and Quality in an Emerging Economy: A Study on Bangladesh

Abstract

This determination of this study to find the association between audit expense, and the significance of the relationship in an emerging economy. Whereas, audit quality is associated with audit expense of a company. The regression model used here taken from (Simunic, 1980). This study is based on five different hypothesis. Descriptive statistics, multiple linear regression, correlation analyses are used for describing the results. For reflecting the proper findings, 23 companies from IT, cement and ceramic sectors are chosen here as sample. Some companies are taken from miscellaneous companies from Dhaka Stock Exchange (DSE). The findings imitates that audit expense is highly dependent on the company size, accounting firm's type, equity-debt ratio. Company size and accounting firm's type are positively significant where equity-debt ratio is negatively significant. Whereas, audit expense also depends on the date of report making. Therefore, big companies need to be concerned about their audit quality, as audit quality could be hampered because of overgenerous compensation. Practical. This outcome will help the stakeholders of the company to judge about the reason of fluctuating audit expense, and probable recommendation as well. Value-The originality of this study to define the fluctuations of audit expense in diverse ways, and find the probable reason of the fluctuations. This paper will help stakeholders to find the probable causes of fluctuating audit quality. Contribution/Originality: This study is one of the very few studies, which have investigated the effect of corporate governance and profitability variables on audit expense and quality. This paper contributes the first logical analysis for stakeholders to understand, elucidate and control the audit quality by the practical recommendations of this paper. 1. INTRODUCTION Auditing has always been making progress from a timely basis inspection of the books of accounts in a mannerly way to accomplish the governance process of companies. It is not only about scrutinizing an entity's financial and non-financial documents but disclosures them. In Bangladesh, mostly all the companies are bound to do auditing for evolving into a better position among other companies and only Public Certified accountants who are known as Chartered Accountants (CA) in Bangladesh can audit any company.

Factors Affecting Audit Professional Ethics - Approach from the Perception of Auditors in Vietnam

“…Finally, recent studies use (iv) model approach to investigate auditor independence which is regulated and guided by standards on auditing and professional ethics issued by IFAC (2016). This approach originates from basic ethical principles that shape the independence; (Ahmed, Hera, Rimi, & Hassan, 2020;Akhtar, Masud, Uddin, & Hye, 2020;Alleyne, Devonish, & Alleyne, 2006;Bakar, Rahman, & Rashid, 2005;Ndaba, Harber, & Maroun, 2021;Tien, Thuong, & Yen, 2019).…”