Intangible assets, risk management committee, and audit fee

Prabhawa, Aditya Aji; Nasih, Mohammad

doi:10.1080/23322039.2021.1956140

Cited by 7 publications

(8 citation statements)

References 31 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Readability and audit costs have an agency theory background in explaining how the two variables are related. Agency theory, which argues that there is a difference of interest between agents (management) and principles (shareholders), has been developed and used by many related studies (Hassan et al 2021;Prabhawa and Nasih 2021;Larasati et al 2019;Datta et al 2020;Salehi et al 2022). The agent's job is to assign managers responsible for the work and decisions made within the company.…”

Section: Hypothesis Developmentmentioning

confidence: 99%

“…To overcome this problem, an external party who is considered a guarantor for the preparation of the annual report from risks is needed, which is a public accountant. Public accountants act as external auditors within the public accounting firm, their audit services require fees commonly known as audit fees, which include all fees paid and paid to the auditor by a company for audit services performed, and the amount of audit fees is influenced by the size of the client company, audit complexity, and audit risk (Prabhawa and Nasih 2021;Simunic 1980). From an audit perspective, the readability of the financial footnotes provides information about engagement risk because bad news can be more difficult to include in the annual report (Bloomfield 2008).…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Readability of Financial Footnotes, Audit Fees, and Risk Management Committee

Prabhawa

Harymawan

2022

Risks

Self Cite

View full text Add to dashboard Cite

We find that the readability of financial footnotes and risk management committees contributes to audit fees. We use observations from 758 companies listed in Indonesia for 2014–2018, and moderated regression analysis is used for statistical analysis. The results show that the readability of financial footnotes will affect audit fees paid, and RMC strengthens the relationship between the readability of financial footnotes and audit fees. In addition, we also used robustness assays to address endogeneity issues with consistent results as moderated regression analysis (hereafter MRA). These findings provide evidence for policymakers about the relationship between the readability of financial footnotes, RMC, and audit fees.

show abstract

Section: Hypothesis Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Readability of Financial Footnotes, Audit Fees, and Risk Management Committee

Prabhawa

Harymawan

2022

Risks

Self Cite

View full text Add to dashboard Cite

show abstract

“…Rahayu et al (2021) used 720 observations of Indonesian listed companies from 2015 to 2018, found that the existence of a Risk Management Committee (RMC) increases audit fees; however, the ratio of independent commissioners weakens the relationship between RMC and audit fees. Prabhawa and Nasih (2021) used 656 observations from companies listed on the Indonesia Stock Exchange from 2010 to 2018 and found that the intangible assets of a company will have a positive impact on audit fees, and the RMC strengthened the relationship between these two variables. Alharasis et al (2022) examine the relationship between the introduction of fair value disclosure (FVD) and audit fees and new empirical evidence on the moderating effect of the global financial crisis (GFC) on this relationship.…”

Section: Literature Reviewmentioning

confidence: 99%

Accounting Information Consistency and Audit Fees: Evidence from China

Fan,

Zhang

2023

AAMJAF

View full text Add to dashboard Cite

This article uses the financial data of China’s A-share listed companies from 2007 to 2020 and examines the impact of accounting information consistency on audit fees. The study finds that higher consistency is significantly associated with a firm’s lower audit fees after controlling for other factors. After the robustness test, the conclusion remains unchanged. The mechanism test finds that higher consistency reduces audit risks and thus reduces the company’s audit fees. Further research finds that the reducing effect of consistency on audit fees is significantly more apparent in companies with higher financial leverage. Overall, this article expands the research on the influencing factors of audit fees from the consistency perspective. The research conclusions have reference value for information users to use accounting information to supervise governance, improve the quality of financial statement disclosure, and reduce the company’s audit fees.

show abstract

“…Особливості теоретичного та практичного забезпечення аудиту операцій з нематеріальними досліджували та оприлюднювали М. І. Ахмед (M. I. Ahmed), А. Че-Ахмад (А. Che-Ahmad) [14], Б. Бадерчер (B. Badertscher), Б. Йоргенсен (B. Jorgensen), Б. С. Кац (B. S. Katz), У. О. Кінні, (W. О. Kinney) [15], В. Гамова [16], Л. Л. Гевлич, Л. О. Мошура [17], М. А. Джавад (M. A. Jawad) [18], О. О. Дядюн [19], М. Етредж (M. Ettredge), Е. Е. Фьорхен (E. E. Fuerherm), К. Лі (C. Li) [20], О. В. Кожушко [21], А. І. Орєхова, Л. В. Гольченко [22], А. А. Прабгава (A. A. Prabhawa), М. Насі (M. Nasih) [23], Л. О. Тарасенко [24], Г. Вішванатан (G. Visvanathan) [25] та інші вітчизняні й зарубіжні науковці та практикуючі фахівці.…”

Section: аналіз останніх досліджень і публікаційunclassified

Audit Procedures for Evaluation of Management Staff’s Statements on Intangible Assets

SHERSTIUK¹

2022

Herald KhmNU.ES

View full text Add to dashboard Cite

The article describes the aspects of evaluating the statements of management regarding the information of intangible assets and transactions with them in the financial statements. As a result of study, it is substantiated that the feature of intangible assets in the context of their accounting and auditing is the lack of tangible form. This circumstance determines the content of the procedures to be used for the intangible assets audit. It is established that during the audit the data of reporting forms are examined as a set of statements that characterize the balances on the accounts at the reporting date, the content and results of business transactions with intangible assets during the reporting period, as well as data in financial reporting forms. Account balances are characterized by statements of management regarding the existence of intangible assets, ownership of rights to them, completeness of reflection and evaluation of relevant objects. Intangible assets transactions are disclosed through the statements of origin, completeness, accuracy of valuation and correspondence of accounts and closing of the period. The basis for the presentation of information about intangible assets in the financial statements are the statements of classification, presentation and disclosure. In order to obtain and evaluate audit evidence on relevant data, it is proposed to use audit procedures such as inspection, observation, request and confirmation, recalculation, re-execution and analytical procedures. However, each statement can be verified by applying more than one procedure. This will help increase the level of reliability of audit evidence and the validity of assurance in the audit results. The results of the study will help to improve the audit methodology of intangible assets of economic entities.

show abstract

Intangible assets, risk management committee, and audit fee

Cited by 7 publications

References 31 publications

Readability of Financial Footnotes, Audit Fees, and Risk Management Committee

Readability of Financial Footnotes, Audit Fees, and Risk Management Committee

Accounting Information Consistency and Audit Fees: Evidence from China

Audit Procedures for Evaluation of Management Staff’s Statements on Intangible Assets

Contact Info

Product

Resources

About