DETERMINANTS OF AUDIT FEES OF LISTED INSURANCE COMPANIES IN NIGERIA
Journal Title: Gusau Journal of Accounting and Finance - Year 2022, Vol 3, Issue 1
Abstract
Controversies had risen among investors and other stakeholders of corporations why external auditors receive a substantial amount as remuneration of the audit and non-audit services rendered to their clients. These fees had been charged to add trustworthiness to the financial reports prepared by the management and also to protect the interest of the shareholders. A lot of problems occurred on what are such factors that determine (increases or decreases) the audit fees charged by external auditors. This study is aimed at examining the factors that determined audit fees of listed insurance companies in Nigeria using a correlational research design. The study’s population comprised of twenty-six (26) listed insurance companies in Nigeria. Panel data were generated from the annual report and accounts of the sampled insurance companies for the periods 2011-2020 arrived at using a judgmental sampling technique. The study used random effect Generalized Least Square (GLS) regression for data analysis. The study revealed that client size and audit firm size are the important factors determining audit fees of listed insurance companies in Nigeria. While client profitability, client complexity, client underwriting risk, and client liquidity risk are found to have an insignificant and negative effect on audit fees of listed insurance companies in Nigeria. The study, therefore, recommended that auditors of Nigerian insurance companies should inspire their clients in increasing their total assets including their investments which increases the size of their businesses. This increases the companies’ financial performances, as well as, the professional fees collected by auditors of insurance companies in Nigeria.
Authors and Affiliations
Sagir Lawal, Mohammed Ibrahim
Keywords
Related Articles
- EP ID EP709135
- DOI -
- Views 57
- Downloads 0
ENVIRONMENTAL ACCOUNTING DISCLOSURE PRACTICES AND FINANCIAL PERFORMANCE OF LISTED CEMENT COMPANIES IN NIGERIA
This study examined the impact of environmental accounting disclosure on financial performance of listed cement companies in Nigeria. The study employed expo facto research design. Data were sourced from three annual rep...
WORKING CAPITAL MANAGEMENT AND PROFITABILITY OF LISTED HEALTHCARE FIRMS IN NIGERIA
This work examined the consequence of operational capital management on corporate performance in Nigerian listed manufacturing firms. Selected companies’ data were extracted for a period of seven years (2013-2019). Corr...
CAPITAL STRUCTURE AND PROFITABILITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA
Bank management and providers of funds are of the view that capital structure is of supreme importance, the use of a wrong mix of capital structure could seriously affect the performance and subsistence of such a bank....
INTERACTIVE EFFECT OF AUDIT FIRM AND AUDIT COMMITTEE MEDIATED BY AUDIT PROCESS ON FRAUDULENT FINANCIAL REPORTING RISKS OF LISTED FIRMS IN NIGERIA
The study examines the Interactive Effect of Audit Firm and Audit Committee Mediated by Audit Process on Fraudulent Financial Reporting Risks of Listed Firms in Nigeria. The population of staff working in audit firms in...
AGENCY BANKING STRATEGIES AND FINANCIAL INCLUSION OF RURAL AREAS IN KWARA STATE, NIGERIA
The nexus between agency banking strategies and financial inclusion have been a debatable paradox for a long period of time due to the important role play by deposit money banks in finance inclusive economy functions. H...