The effect of audit fees on disclosure quality in Jordan

Shakhatreh, Mohammad Ziad; Alsmadi, Safaa Adnan; Alkhataybeh, Ahmad

doi:10.1080/23311975.2020.1771076

Cited by 19 publications

(11 citation statements)

References 80 publications

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“…Moreover, higher audit fees can indicate the restatement of financial reports and can also be used to assess the quality of financial reporting of a firm. Therefore, the audit fees ratio index has also been used as a determinant of financial reporting disclosure quality, consistent with Tang (2008), Bala et al (2018) and Shakhatreh et al (2020). Lantto and Shalstrὂm (2009) used key financial indicators as proxy indicators to measure a firm's financial reporting disclosure quality.…”

Section: Ifrs Compliance As a Measure Of Financial Reporting Disclosure Qualitymentioning

confidence: 92%

Constructing a Financial Reporting Disclosure Quality Model of Listed Firms in Malaysia

Hla

Cheuk

Isa

et al. 2021

IJBS

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The national accounting standards set by the Malaysian Accounting Standards Board (MASB) is largely converged with the International Financial Reporting Standards (IFRS). The benefit arising from this is to enable foreign investors to analyse their investments via a standardised financial reporting system in Malaysia. Financial reporting disclosure quality by the listed firms in the consumer product and service sector on Bursa Malaysia is an essential feature in the firms’ financial reporting to the public. This research evaluates the development of financial reporting disclosure quality assurance by firms listed on Bursa Malaysia, by examining financial reporting disclosure quality and subsequent compliance with the International Financial Reporting Standards. This study uses a content analysis approach to identify a financial reporting standard compliance disclosure index, based the financial statements issued by firms listed on Bursa Malaysia from 2008 – 2016. A panel regression model is utilised to construct a model of financial reporting disclosure quality of the firm, based the extent of compliance with IFRS disclosure requirements from the following perspectives: corporate governance practice, audit quality and corporate social responsibility. The sustainability of financial reporting disclosure quality by the listed firms and subsequently the Malaysian capital markets will enable the same to attain a competitive edge in the international markets. In addition, this study will discuss financial reporting disclosure quality implications relevant to the policy makers in Bursa Malaysia, and it is envisaged that such model can be utilised in the improvement of future financial reporting policies.

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Section: Ifrs Compliance As a Measure Of Financial Reporting Disclosure Qualitymentioning

confidence: 92%

Constructing a Financial Reporting Disclosure Quality Model of Listed Firms in Malaysia

Hla

Cheuk

Isa

et al. 2021

IJBS

View full text Add to dashboard Cite

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“…Audit resource costs are related to the number of audit efforts the auditors took in auditing and the risk premium is compensation for risk-taking. Shakhatreh, et al (2020) suggested that in the provision of audit services, independent external auditors are paid fees for their services rendered. The level of fees paid relates to the efforts of the external auditors.…”

Section: Concept Of Audit Firm Characteristicsmentioning

confidence: 99%

“…Defond et al (2018) stated that external audit firm expertise is one of the qualities in big audit firms' services. Shakhatreh, et al (2020) noted that the skill and knowledge factors will determine auditor switching by the firm so that the company prefers big audit firms. A study conducted by Ugwu (2020) found a positive and not significant association between audit firm size and auditor switching in Nigeria.…”

Section: Audit Firm Sizementioning

confidence: 99%

Audit Firm Attributes and External Auditors’ Switching Behaviour of Insurance Companies in Nigeria

Appah¹,

J.U.²,

A.J.³

et al. 2022

African Journal of Accounting and Financial Research

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Auditor replacement has been a critical issue in research to be solved in order to enhance the quality of audit reports. This study investigated the nexus between audit firm characteristics and external auditors’ switching behaviour of insurance companies in Nigeria. The specific objectives include the relationship between audit delay, audit tenure, audit fees, audit client size and audit firm size on audit switching. The study employed ex post facto and correlational research designs with a population of forty-seven (47) insurance companies. The study used the Taro Yamene formula to determine the sample size of forty-two (42) insurance companies and data was collected from the financial reports of sampled companies. The secondary data obtained from the annual reports were analysed using univariate, bivariate and multivariate analysis. The multiple regression analysis revealed that audit delay negatively and significantly impacts on audit switching of listed insurance companies in Nigeria; audit tenure negatively and significantly impacts on audit switching of listed insurance companies in Nigeria; audit fees positively and significantly impact on audit switching of listed insurance companies in Nigeria; audit client size negatively and insignificantly impact on audit switching of listed insurance companies in Nigeria; audit firm size positively and significantly influence external auditor switching of listed in insurance firms in Nigeria. On the basis of the findings, the study concluded that audit firm characteristics influence the level of external auditor switching of listed insurance companies in Nigeria. Hence, the study recommended amongst others, that companies should conduct proper short and long term effects of audit delay, audit tenure, audit fees, audit client size and audit firm size on external auditors replacement before selection and engagement of new auditor because each wrong decision might affect audit quality. The implication of this study was to improve the research on the relevance of external auditors’ switching because of the decision of the firms in defining audit firm services and audit quality.

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“…In this study, audit fee is taken as a measure of audit risk. Khan and Abdul Subhan (2019) argue that a high audit fee is an indication of high audit quality due to extended audit hours and expert audit staff to conduct more detailed investigation and Shakhatreh et al (2020) find that audit fee has a significant effect on disclosure quality. The audit fee is higher for firms that undertook RPTs and internal audit function have a moderating effect on the relationship between RPTs and audit fee (Al-dhamari et al, 2018).…”

Section: Literature Review and Development Of Hypothesesmentioning

confidence: 99%