Determinants of Audit fees in a Developing Economy: Evidence from Ghana
Journal Title: International Journal of Academic Research in Business and Social Sciences - Year 2017, Vol 7, Issue 11
Abstract
Audit fee studies, being a tool to assist negotiation between auditors and clients are regularly undertaken all over the world and essentially stem on the factors prevalent in the specific auditing/accounting environments. The purpose of the study was to examine the determinant of audit fee with empirical evidence from the Ghana stock exchange. Specifically, the study examined audit fee determinant which included the client size, profitability measured by ROA, LOSS, client risk measured by debt ratio, YEAR (season) and MNC. Using the Simunic (1980) model, this study reveals that client’s size of business, international recognition, affiliation of audit firms (Big four firms) and profitability are significant determinants of audit fee in Ghana. Results in study indicate that ignorance of risk factor by the auditors may pose serious threat to fame and reputation of audit firm along with indication of feeble legal regime in Ghana. The results of the study have significant implications for auditors and firms in negotiating audit fees in Ghana. The results of this study is unique as it is the first study that comprehensively examines determinants of audit fees on listed firms in Ghana
Authors and Affiliations
Alhassan Musah
Keywords
Related Articles
- EP ID EP623841
- DOI 10.6007/IJARBSS/v7-i11/3510
- Views 89
- Downloads 0
Stress Reduction through Innovative Training: Dancing with Stress
Occupational stress becomes more and more a problem in Romanian organizations. As high level of stress experienced by employees is reflected in reduced work productivity and absenteeism, just to mention the most importan...
Management of Government Information in the Era of Electronic Government: Where we are?
The implementation of electronic government by Malaysia government was started since the Malaysia awarded Multimedia of Science Coridor (MSC). In order to ensure the successfulness of the transition, it is important for...
Verbal Communication used by Cardiologist at National Heart Centre Malaysia
Issues regarding the relationship between doctors and patients have been discussed generally. Literature concerning the health care was based on the performance and patients’ view on the facility provided in the health c...
What is the Contribution of ISO 9001 Quality Management System to Educational Institutions?
In this study, ISO Quality Management System and its benefits to education sector are examined. Solution offers were proposed to many sectorial problems with this article examined the benefits of ISO 9001 applications to...
Influence of Network Sustainability Governance in Ecotourism Management: Case Study in Paya Indah Wetlands
The Malaysian government wants to develop ecotourism because can give income to the country through tourist spending and foreign exchange. Market sustainability governance influence the management of ecotourism center mu...