The Analysis of Factors Affecting the Amount of Audit Fee with Type of Public Accountant Office as a Moderating Variable in Manufacturing Companies Listed on the IDX for the 2013-2019 Period

This study analyzes the factors influencing the number of audit fees in manufacturing companies listed on the Indonesia Stock Exchange in 2013 – 2019. The number of audit fees depends on several factors that influence it. The Indonesian Institute of Certified Public Accountants has determined the minimum standard of audit fees charged to auditee companies but does not include a substantial total cost and tends to fluctuate and vary. This study uses the audit committee, audit report lag, and firm size as independent variables, the type of public accounting firm as the moderating variable, and audit fee as the dependent variable. This study uses causal associative as the research design. The data was collected by collecting data on the company's financial statements from 2013 to 2019. The study population was 176 manufacturing companies whose samples were taken using the purposive sampling method. The number of research samples was 20, with 140 observations. The data analysis technique uses Studio R's panel analysis regression model as the test tool. The results showed that the Audit Committee, audit report lag, and firm size each had a significant positive effect on the audit fee's value and jointly had a significant impact on the audit fee. The type of public accountant office is not a moderating variable. Keywords: audit fee, audit committee, audit report lag, firm size, public accountant office.

Determinants of Audit Quality at Public Accounting Firms

Objective – This study aims to examine and prove the effect of education, experience and audit fee on audit quality. Methodology – The data used are primary data in the form of questionnaires distributed to auditors, both senior and junior auditors at Public Accounting Firms located in Sulawesi. The questionnaires distributed to respondents were 46 auditors and 42 questionnaires were returned and able to processed. Findings – This research used a quantitative approach by measuring the objective data through scientific calculations, derived from samples of certain objects to answer a number of questions. The sampling technique used in this study is purposive sampling by using certain criteria and the model used is multiple linear regression analysis. The results of this study indicate that education, experience and audit fee have an effect on audit quality. Novelty – Audit quality is a representation of the auditor's performance as an audit service provider and also the auditee as an audit service user. As a liaison between the interests of financial statement users and the company, auditors are required to improve the quality of their services which in turn will have an impact on quality of the audit results. Auditors with adequate education and experience and appropriate audit fee in performing audit services will have an effect on the quality of the resulting audit. Type of Paper: Empirical JEL Classification: M40, M49. Keywords: Audit, Education; Experience; Fee; Quality

Antecedents to the Audit Quality of Non-Financial Firms Listed in Iraq Stock Exchange: The Moderating Role of Accounting Fairness

The main objective of the current study is to examine audit fee, financial reporting quality, going concern, and earning management as antecedents to the audit quality of non-financial firms listed in Iraq stock Exchange. In addition to that the study has also examined the moderating role of accounting fairness in the relationship between audit fee, financial reporting quality, going concern, earning management and audit quality of non-financial firms listed in Iraq stock Exchange. The data of 60 firms listed on Iraqi stock exchange over the period of 4 years from 2017-2021 is taken from the audited accounts. The study basically employs panel data analytical tools in achieving the set goals of the research. The choice of panel data approach is informed by a number of methodological advantages it offers. Results indicates that that as interest in the agency theory grows, the importance of fairness as a principle will grow, and that it is expected that the value of this concept would grow as a means of resolving conflict and exploiting interests that arise between the many stakeholders in the firm. on the concept of fairness, agreeing that the interests of particular parties should not trump fairness, which he referred to as clarity. The results of the study have provided support to the hypothesis of the study. The findings of the study will be helpful for policymakers, and researchers on the issues related to accounting fairness ,audit fee, financial reporting quality, going concern, earning management and audit quality of non-financial firms listed in Iraq stock Exchange.

Auditing and earnings management in New Zealand

<p>The research summarised in this thesis focuses on two research issues of particular importance to the New Zealand economy. First, the thesis examines the impact of audit factors on the level of earnings management. Second, the thesis empirically assesses the relationship between the level of earnings management and the audit fees charged by audit firms. In the empirical work summarised in this thesis I use the absolute value of discretionary accruals (DACCs) as a proxy for earnings management. I estimate DACCs for each sample firm by using the modified Jones (1991) model. Moreover, several auditor characteristics have been employed in the thesis as proxies for auditor quality and independence. I use a BIG4 dummy variable (that equals 1 if the auditor is a Big 4 audit firm and 0 otherwise), an AOFFICE dummy variable (that equals 1 if the audit firm’s office is located in Wellington or Auckland and 0 otherwise), an AO dummy variable (that equals 1 if the client firm receives a qualified or conditional audit opinion and 0 otherwise) and a FISCAL dummy variable (that equals 1 if the client firm’s fiscal year-end falls in the period from March to June and 0 otherwise) as proxies for audit quality. I also use a RNAF variable (as measured by the ratio of non-audit fees to total fees paid) and a C_AUDITOR dummy variable (that equals 1 if a client firm changes its audit firm and 0 otherwise) as proxies for auditor independence in relation to the level of DACCs. The empirical results summarised in the thesis show that the level of DACCs is significantly and negatively associated with the BIG4 and AOFFICE variables. This result is consistent with the common perception that higher quality auditors will lead to a higher audit quality and that this in turn will reduce level of DACCs. I also find a positive and statistically significant relationship between the FISCAL variable and the level of DACCs. This result indicates that DACCs are likely to be higher if the audit is conducted during the busy audit season. The empirical results summarised in the thesis also show a positive and significant relationship between the audit opinion (AO) variable and the level of DACCs. This means that a qualified or conditional audit opinion is more likely to occur if the financial statements involve a relatively higher level of DACCs. However, the empirical results summarised in the thesis report an insignificant relationship between the level of DACCs and the C_AUDITOR and RNAF variables. These results mean that auditor independence does not appear to have any impact on the level of DACCs. In part two of this thesis, I examine whether the level of DACCs in the current year is associated with the level of the audit fee in the next ensuing year. Here it is well known that each year the auditor will review both the general and specific factors affecting their audit responsibilities in relation to a particular audit client. Hence, the agreed audit fee for the next ensuing year is likely to reflect information about the level of earnings management in prior years and of how the issues arising out of these earnings management procedures have been resolved between the client firm and the audit firm. In order to test this hypotheses, I employ the audit fee model of Simunic (1980) as refined by Choi et al. (2009), Francis and Simon (1987), Hay et al. (2006b) and Menon and Williams (2001). As expected, the second set of empirical results summarised in the thesis show a positive and statistically significant relationship between the level of DACCs in the current year and the level of the audit fee in the next ensuing year. This means that a high level of DACCs in the current year will impact positively on the level of the audit fee in the next ensuing year.</p>

Auditing and earnings management in New Zealand

<p>The research summarised in this thesis focuses on two research issues of particular importance to the New Zealand economy. First, the thesis examines the impact of audit factors on the level of earnings management. Second, the thesis empirically assesses the relationship between the level of earnings management and the audit fees charged by audit firms. In the empirical work summarised in this thesis I use the absolute value of discretionary accruals (DACCs) as a proxy for earnings management. I estimate DACCs for each sample firm by using the modified Jones (1991) model. Moreover, several auditor characteristics have been employed in the thesis as proxies for auditor quality and independence. I use a BIG4 dummy variable (that equals 1 if the auditor is a Big 4 audit firm and 0 otherwise), an AOFFICE dummy variable (that equals 1 if the audit firm’s office is located in Wellington or Auckland and 0 otherwise), an AO dummy variable (that equals 1 if the client firm receives a qualified or conditional audit opinion and 0 otherwise) and a FISCAL dummy variable (that equals 1 if the client firm’s fiscal year-end falls in the period from March to June and 0 otherwise) as proxies for audit quality. I also use a RNAF variable (as measured by the ratio of non-audit fees to total fees paid) and a C_AUDITOR dummy variable (that equals 1 if a client firm changes its audit firm and 0 otherwise) as proxies for auditor independence in relation to the level of DACCs. The empirical results summarised in the thesis show that the level of DACCs is significantly and negatively associated with the BIG4 and AOFFICE variables. This result is consistent with the common perception that higher quality auditors will lead to a higher audit quality and that this in turn will reduce level of DACCs. I also find a positive and statistically significant relationship between the FISCAL variable and the level of DACCs. This result indicates that DACCs are likely to be higher if the audit is conducted during the busy audit season. The empirical results summarised in the thesis also show a positive and significant relationship between the audit opinion (AO) variable and the level of DACCs. This means that a qualified or conditional audit opinion is more likely to occur if the financial statements involve a relatively higher level of DACCs. However, the empirical results summarised in the thesis report an insignificant relationship between the level of DACCs and the C_AUDITOR and RNAF variables. These results mean that auditor independence does not appear to have any impact on the level of DACCs. In part two of this thesis, I examine whether the level of DACCs in the current year is associated with the level of the audit fee in the next ensuing year. Here it is well known that each year the auditor will review both the general and specific factors affecting their audit responsibilities in relation to a particular audit client. Hence, the agreed audit fee for the next ensuing year is likely to reflect information about the level of earnings management in prior years and of how the issues arising out of these earnings management procedures have been resolved between the client firm and the audit firm. In order to test this hypotheses, I employ the audit fee model of Simunic (1980) as refined by Choi et al. (2009), Francis and Simon (1987), Hay et al. (2006b) and Menon and Williams (2001). As expected, the second set of empirical results summarised in the thesis show a positive and statistically significant relationship between the level of DACCs in the current year and the level of the audit fee in the next ensuing year. This means that a high level of DACCs in the current year will impact positively on the level of the audit fee in the next ensuing year.</p>

Machiavellian Sebagai Variabel Moderasi Pada Pengaruh Audit Fee Terhadap Disfungsional Auditor

Penelitian ini bertujuan untuk menguji pengaruh machiavellian sebagai variabel moderasi pada audit fee terhadap disfungsional auditor. Metode penelitian yang digunakan adalah kuantitatif dengan sumber data primer melalui pengumpulan data kuesioner yang disebarkan dengan mempertimbangkan beberapa kriteria tertentu atau purposive sampling. Dari 100 responden yang disebar, sebanyak 66 yang memenuhi kriteria sebagai sampel dan dapat diolah menggunakan regresi linear dan moderated regression analysis. Hasil penelitian menunjukkan bahwa variabel audit fee berpengaruh negatif terhadap disfungsional auditor karena fee atas pekerjaan audit yang dinilai terlalu rendah menyebabkan auditor menyelesaikan pekerjaan yang terlalu cepat. Tekanan yang dialami auditor dari manajemen tingkat atas ke bawah ini akan mendorong perilaku tereduksinya kualitas audit atau perilaku disfungsional auditor, sementara machiavellian tidak mampu memoderasi audit fee terhadap disfungsional auditor karena tidak adanya komitmen dalam menjaga integritas akan menaikkan perilaku disfungsional auditor. Penelitian ini berkontribusi pada perusahaan dan regulator karena atas audit fee yang dikeluarkan akan menentukan tindakan disfungsional yang dilakukan oleh auditor, sehingga regulator dapat mempertimbangkan regulasi yang adil atas penentuan batasan audit fee.

External Factors and the Pricing of Audit Services: A Systematic Review of the Archival Literature using a PESTLE Analysis

Client- and auditor-related attributes are well-documented determinants of audit pricing but the number of empirical archival studies investigating the effects of external factors on audit pricing has grown rapidly in recent years. We extend the traditional framework used to classify audit fee research by adding a novel structure that focuses on political, economic, social, technological, legal, and environmental/ecological factors (a PESTLE analysis). We provide a systematic review of the literature on external factors and audit pricing, and we suggest opportunities for future research. Our review reveals that audit researchers focus on legal factors in terms of regulatory changes, and we find increased attention to political, economic, and social factors. However, despite increased public scrutiny, technological and environmental/ecological factors remain under-researched. Overall, our review demonstrates the importance of considering external factors to gain a more complete understanding of the audit pricing framework, especially in terms of global and regional variations.

The Effect of Education, Experience, and Audit Fee on Audit Quality

Audit quality is a representation of the auditor's performance as an audit service provider and also the auditee as an audit service user. As a liaison between the interests of users of financial statements and the interests of the company, auditors are required to improve the quality of their services which in turn will have an impact on quality audit results. Auditors with adequate education and experience and appropriate audit fee in performing audit services will have an effect on the quality of the resulting audit. This study aims to examine and prove the effect of education, experience and audit fee on audit quality. The data used are primary data in the form of questionnaires distributed to auditors, both senior auditors and junior auditors at Public Accounting Firms located in Sulawesi. The questionnaires distributed to respondents were 46 auditors and 42 questionnaires were returned and able to processed. This study used a quantitative approach with purposive sampling and multiple linear regression analysis. The results of this study indicate that education, experience and audit fee have an effect on audit quality Keywords: Education; Experience; Audit Fee; Audit Quality

Keterbacaan Catatan Atas Laporan Keuangan dan Dampak Audit (Readability over Financial Reporting Footnotes and Audit Outcomes)

This study aims to find out the relationship of readability over financial reporting footnotes and audit outcomes. Audit outcomes are projected by audit fees and audit report lag. Researchers used data from the company's financial statements listed on IDX in 2015-2018. Researchers used purposive sampling. From the copying, researchers processed 184 company data. This study used the panel's data regression analysis method. Data processing uses Generalized - least - squares. This research proves that the worse the readability, the lower the audit fee. Meanwhile, the worse the readability, the more time it takes the auditor to carry out an examination of the financial statements. This phenomenon occurs because the condition of the readability of notes to financial statements in Indonesia is still at a low level.