Audit Fees: A Meta‐analysis of the Effect of Supply and Demand Attributes*

Hay, David; Knechel, W. Robert; Wong, Norman

doi:10.1506/4xr4-kt5v-e8cn-91gx

Cited by 1,269 publications

(1,466 citation statements)

References 104 publications

Supporting

Mentioning

1,343

Contrasting

Unclassified

Order By: Relevance

“…Audit fee model used in past studies have included a variety of variables to control for cross-sectional differences associated with client size, complexity and client risk (Simunic, 1980;Craswell, 1992;Gul and Tsui, 1997). The set of control variables selected in this study is consistent with the variables generally identified in much of the literature on audit fees (Hay et al, 2006) and they are as follows. The total assets (TA) are to measure the client size.…”

Section: Audit Fee Modelmentioning

confidence: 99%

Audit Committee and Audit Fees in Malaysia: The Moderating Role of Political Connection

Norziaton¹,

Devi²,

Meng³

2015

jmr

View full text Add to dashboard Cite

The Malaysian corporate governance regime underwent significant enhancement through the revamp of the Bursa Malaysia Listing Requirements (BMLR) in 2008 in respect of audit committee characteristics in order to address adverse market perceptions of its relationship based economy with the strong presence of politically connected (PCON) firms. This study investigates whether such reforms have made a difference. We examine if PCON firms have higher audit fees post implementation of BMLR 2008 on audit committee characteristics. Using data from 945 firm-year observations for 2005 to 2009 we find that PCON firms have higher audit fees due to improved governance which demands an increase in audit effort. ISSN 1941-899X 2015 www.macrothink.org/jmr 531 Further, the association between audit committee independence, diligence, and expertise and audit fee is stronger post-2008, suggesting that PCON firms are committed to strong corporate governance and are prepared to pay a higher quality external audit work. Journal of Management Research

show abstract

Section: Audit Fee Modelmentioning

confidence: 99%

Audit Committee and Audit Fees in Malaysia: The Moderating Role of Political Connection

Norziaton¹,

Devi²,

Meng³

2015

jmr

View full text Add to dashboard Cite

show abstract

“…There are techniques for taking into account differences in setting and period, that weight studies according to size, control for publication bias, and that can be used to resolve conflicting results. An example is meta-regression (Hay, Knechel, and Wong 2006;Hay 2013). This technique is time consuming and complex, but could be considered for future work to assess research on some of the questions arising, especially after more research studies become available.…”

Section: Limitationsmentioning

confidence: 99%

Audit Fee Research on Issues Related to Ethics

Hay

2017

Current Issues in Auditing

Self Cite

View full text Add to dashboard Cite

SUMMARY Audit fees are related to important ethical issues for auditors. There has been increasing research on audit fees recently, including research on potential ethical risks regarding audit fees, which helps to illuminate some of these professional issues. The International Ethics Standards Board for Accountants (IESBA) is very interested in this area and asked me to prepare a paper reviewing the relevant research. This summary reviews research that became available from 2006 to 2016 on four issues related to audit fees—fee level, dependence, non-audit fees, and firms that have a significant non-audit services business. Examining the research shows consistent evidence about two issues, namely that audit fees for new engagements are lower and that non-audit services affect independence in appearance. There are two further issues about which there is some concern. First, there are occasional studies reporting evidence that non-audit services provided by an auditor are associated with a loss of independence indicated by lower audit quality, even though most research does not support this conclusion. Second, there has been recent concern about growth in non-audit services to non-audit clients and there is some preliminary evidence that audit quality is lower in firms that have more extensive non-audit businesses. In general, although audit fee research does not convey a message that there are widespread ethical problems, the body of research shows that there are some risk areas.

show abstract

“…In addition to the two independent variables, we control for the effects of other variables on audit fees that were found in previous studies [15,30]. The control variables include LOSS, lnTA, LEV, BIG4, lnSUBs, NSH5_S.…”

Section: Control Variablesmentioning

confidence: 99%

Corporate Governance Quality and Audit Quality in Malaysia

2017

View full text Add to dashboard Cite

Abstract. This paper examines the impact of corporate governance quality on audit quality in Malaysia. The sampling frame is 457 Malaysian non-finance listed companies, over the periods 2003 (pre-2007 Code period) and 2008to 2012 (post -2007 Code period), consisting of 2,285 observations for each period. This study uses pooled ordinary least square (OLS) to test the research hypotheses and model. The results show that the effectiveness of the audit committee (AC) has no significant influence on audit fees in the pre-and post-2007 Code period, and the effectiveness of the board has no significant influence on audit fees in the pre-2007 Code period, although it has significant influence on audit fees in the post-2007 Code period. The results suggest that the existing corporate governance framework in relation to AC has limitation in its governance role on audit process. Our study contributes to existing literature conducted in the US, the UK and Australia where their institutional settings are different from that of Malaysia. In addition, our study is based on the 2007 Code's recommendation which contributes to the previous research conducted in Malaysia and provides an insightful evidence to the regulator on the corporate governance regime in Malaysia.

show abstract

Audit Fees: A Meta‐analysis of the Effect of Supply and Demand Attributes*

Cited by 1,269 publications

References 104 publications

Audit Committee and Audit Fees in Malaysia: The Moderating Role of Political Connection

Audit Committee and Audit Fees in Malaysia: The Moderating Role of Political Connection

Audit Fee Research on Issues Related to Ethics

Corporate Governance Quality and Audit Quality in Malaysia

Contact Info

Product

Resources

About