The relationship between audit fees and audit committee characteristics: evidence from the Athens Stock Exchange

Drogalas, George; Nerantzidis, Michail; Mitskinis, Dimitrios; Tampakoudis, Ioannis

doi:10.1057/s41310-020-00088-9

Cited by 18 publications

(21 citation statements)

References 101 publications

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“…The modern business environment requires the establishment of an effective internal audit function so as to avoid inadequacies regarding corporate governance issues, financial reporting but also to understand and identify risks that threaten business objectives and strategies (Benli and Celayir, 2014; De Zwaan et al , 2011; Drogalas and Siopi, 2017; Drogalas et al , 2020a; Grant and Visconti, 2006; Karagiorgos et al , 2010; KPMG, 2007; Lemon and Tatum, 2003).…”

Section: Discussionmentioning

confidence: 99%

“…Corporate bankruptcies highlighted deficiencies in corporate governance, financial reporting and timely detection of threats to business strategies (Drogalas et al , 2020a, b; Grant and Visconti, 2006; KPMG, 2007). On that basis, there is growing evidence with regard to the effects of internal audit on corporate governance (AlQadasi and Abidin, 2018; Myers and Ziegenfuss, 2006; Ridley et al , 2011; Vadasi et al , 2020).…”

Section: Introductionmentioning

confidence: 99%

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Risk-based internal audit: factors related to its implementation

Lois

Drogalas

Nerantzidis

et al. 2021

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Purpose This study aims to investigate the factors associated with the implementation of risk-based internal audit (RBIA). Design/methodology/approach As a first step, a literature review of the relevant literature is performed and five potential factors related to the implementation of RBIA are identified. Based on that, this paper constructs a questionnaire survey sent out to 185 internal auditors, executives and accountants in Greece to receive 90 responses during the period of November 2019–January 2020. Multiple regression analysis is conducted to identify the factors related to the implementation of RBIA. Findings This paper shows that there is a statistically significant positive relationship between the implementation of RBIA and: the provision of risk management training, an active audit committee role and the establishment of a formalized risk management system. Practical implications The results have important implications for internal auditors, chief executive officers and accountants who wish to enhance internal audit effectiveness and the accuracy and quality of financial information. Originality/value Empirical studies on the factors related to the implementation of RBIA are rare. This is the first study to create empirical variables based on a thorough review of the relevant literature to empirically investigate the factors that are related to the implementation of RBIA in an emerging economy. By focusing on the Greek context, this study also sheds light to other countries with similar corporate governance systems, thus providing insights to settings where the Type II agency problem exists (La Porta et al., 1999).

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Risk-based internal audit: factors related to its implementation

Lois

Drogalas

Nerantzidis

et al. 2021

Self Cite

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“…Nilai biaya audit dipengaruhi oleh variabel-variabel tertentu. Beberapa penelitian menguji faktor-faktor yang menimbulkan pengaruh terhadap biaya audit, seperti ukuran KAP (Mustapha et al, 2020), effective tax rate, cash tax rate (Onatuyeh & Ukolobi, 2020), rotasi komposisi komite audit (Sellami & Cherif, 2020), dualitas peran CEO (Farooq et al, 2018), pengalaman dewan direksi (Al-Hamadeen et al, 2021), pengalaman komite audit (Drogalas et al, 2020), koneksi politik (Shakhatreh & Alsmadi, 2021), kerumitan audit, risiko audit, karakteristik auditor (Dey & Lim, 2018), dan lainnya. Model penelitian ditunjukkan melalui Gambar 1.…”

Section: Pendahuluanunclassified

Karakteristik Dewan Direksi, Komite Audit, dan Biaya Audit

Hendi

Shella

2022

E-Jurnal Akuntansi

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This study aims to examine the influence of the board of directors and the audit committee characteristic on audit fees. The independent variables were the size of the board of directors, the independence of the board of directors, women on the board of directors, the size of the audit committee, the independence of the audit committee, the financial expertise of the audit committee, the diligence of the audit committee, and women on the audit committee. The research population includes financial sector companies listed on the Indonesia Stock Exchange in 2017-2021. The sample consists of 208 observations which were determined through purposive sampling. Data were analyzed by panel data regression. The analysis results showed that the size of the board of directors and the diligence of the audit committee had a significant positive influence on audit fees. Other variables have no significant effect on audit fees. Keywords: Audit Committee; Audit Fee; Board of Director; Financial Sector

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“…As in practice audit quality may not be readily observable, the measures employed to ensure reliability should therefore be a close and acceptable proxy. The most prevalent proxies are auditor size (Zureigat, 2011;Habbash, 2015), audit fees (Yuniarti 2011;Aronmwan et al, 2013;Drogalas et al, 2021), auditor sector specialization Parker, 2000, Jiang et al, 2012;Habbash, 2015), and the quality of accruals (Dhaliwal et al, 2010;Lawrence et al, 2011). Importantly though, Chadegani (2011) identify auditor size as the most frequently employed audit quality proxy.…”

Section: Audit Qualitymentioning

confidence: 99%

“…Several empirical studies examine the impact of audit committee characteristics on audit fees and audit firm type, though the majority are conducted for developed countries (Abbott et al, 2003;Goodwin-Stewart and Kent, 2006;Rainsbury et al, 2009;Dhaliwal et al, 2010;Zaman et al, 2011;Adelopo et al, 2012;Blankley et al, 2012;Clout et al, 2013;Bruynseels and Cardinaels, 2014;Hossain et al, 2016;Ghafran and O'Sullivan, 2017;Ali et al, 2018;Drogalas et al, 2021). However, few studies examining the association between the characteristics of audit committees and audit quality have been undertaken for developing countries.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Audit Committee Characteristics on Audit Quality: Evidence From Saudi Arabia

Boshnak

2021

IRMM

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This study examines the impact of audit committee (AC) characteristics on audit quality in the Saudi listed firms. In addition, this study is also evaluating the Saudi CG Code amended in 2017. The data for the study is obtained from secondary (annual reports) data. The sample firms are 210 firms listed on the Saudi Stock Exchange (Tadawul) over the period of 2017-2019. The audit firm type is used as a proxy for quality in this study. Multiple regression analysis is used to assess the relationship between AC characteristics and audit quality. The regression models show that firms with AC educational background in accounting and finance, and larger firms with higher state and institutional ownership are more likely to engage a big four audit firm, in so doing signalling greater audit quality. The results support agency and institutional theories concerning audit quality. In contrast, firms with more experts on the AC and higher leverage are more likely to select non-big four auditing firms which require lower audit fees. However, the size, number of meetings, and degree of independence of the AC do not significantly affect the level of audit quality. In addition, a combined AC effectiveness score is found to have a negative though insignificant impact on audit quality, contradicting governance regulation and theory expectations that effective ACs should improve audit quality. The results of this study present some key implications for CG regulators and other stakeholders. CG regulators should understand that the simple presence of an AC that meets baseline CG regulatory requirements does not automatically ensure its efficacy or improve auditing process quality. Therefore, boards and shareholders must continue to monitor and review AC decisions, particularly where they relate to auditor engagement, even where committees are, prima facie, deemed effective. The study contributes to the existing body of literature on the role of the audit committee in improving audit quality by addressing the paucity of evidence for emerging economies, and the case of Saudi Arabia in particular. The findings should prove useful for regulators and policy makers, academic researchers, accountants, financial experts, and audit practitioners in the Middle East and wider Arab region, particularly for those countries currently reviewing and setting guidelines for effective audit committees. Moreover, the findings should emphasise the importance of the concept of audit quality and its drivers in a Saudi Arabian corporate setting.

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The relationship between audit fees and audit committee characteristics: evidence from the Athens Stock Exchange

Cited by 18 publications

References 101 publications

Risk-based internal audit: factors related to its implementation

Risk-based internal audit: factors related to its implementation

Karakteristik Dewan Direksi, Komite Audit, dan Biaya Audit

The Impact of Audit Committee Characteristics on Audit Quality: Evidence From Saudi Arabia

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