Study on factors affecting audit fees and audit quality through auditors’ perceptions: Evidence from an emerging economy
Audit fees and audit quality have received the attention of stakeholders, clients, audit firms, and third parties. Each subject has its own opinion on determining influencing factors and their relationship. This study aims to investigate the determining factors of audit fees and audit quality in Vie...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2022-06-01
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| Series: | Problems and Perspectives in Management |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/16665/PPM_2022_02_Van.pdf |
| _version_ | 1798039847856766976 |
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| author | Hau Nguyen Van Hai-Phan Thanh Cuong Nguyen Thanh Diep Nguyen Ngoc Giang Ha Hai |
| author_facet | Hau Nguyen Van Hai-Phan Thanh Cuong Nguyen Thanh Diep Nguyen Ngoc Giang Ha Hai |
| author_sort | Hau Nguyen Van |
| collection | DOAJ |
| description | Audit fees and audit quality have received the attention of stakeholders, clients, audit firms, and third parties. Each subject has its own opinion on determining influencing factors and their relationship. This study aims to investigate the determining factors of audit fees and audit quality in Vietnam. Using random data collection, a questionnaire was created on Google forms and sent to auditors from the 4th quarter of 2020 to the end of the 1st quarter of 2021. 267 valid auditors’ responses in 28 audit firms were used for data analysis. Exploratory factor analysis (EFA) was used to determine relationships between observed variables and factors. The measurement model and recommended hypotheses were confirmed by structural equation modeling (SEM) using SPSS 26 and AMOS 26. The study results show that contract types and audit complexity, audit firms’ reputation, size, and risk significantly impact audit fees and audit quality. In addition, the specialization of the audit firms does not have a positive effect on audit quality but on audit fees. The audit tenure has no statistical impact on audit fees and audit quality. Notably, audit fees statistically affected audit quality. Several implications can be applied, such as increasing the firm size, performing the procedures in response to audit risk, separating audit contract types, and determining the complexity of audit projects and specialties. |
| first_indexed | 2024-04-11T21:59:20Z |
| format | Article |
| id | doaj.art-3b0c7f4fce2d45feb379d8970f7468ad |
| institution | Directory Open Access Journal |
| issn | 1727-7051 1810-5467 |
| language | English |
| last_indexed | 2024-04-11T21:59:20Z |
| publishDate | 2022-06-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj.art-3b0c7f4fce2d45feb379d8970f7468ad2022-12-22T04:01:00ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672022-06-0120247148510.21511/ppm.20(2).2022.3916665Study on factors affecting audit fees and audit quality through auditors’ perceptions: Evidence from an emerging economyHau Nguyen Van0Hai-Phan Thanh1https://orcid.org/0000-0003-2176-9153Cuong Nguyen Thanh2https://orcid.org/0000-0003-0337-7631Diep Nguyen Ngoc3https://orcid.org/0000-0001-7496-0336Giang Ha Hai4https://orcid.org/0000-0001-8682-258XPh.D., Faculty of Finance and Accounting Department, Posts and Telecommunications Institute of TechnologyPh.D., Associate Professor, Provost, School of Business and Economics, Institute of Research and Development, Duy Tan UniversityPh.D., Faculty of Accounting and Finance, Nha Trang UniversityPh.D. Candidate, School of Business and Economics, Institute of Theoretical and Applied Research, Duy Tan UniversityPh.D. Candidate, Institute of Theoretical and Applied Research, School of Business and Economics, Duy Tan UniversityAudit fees and audit quality have received the attention of stakeholders, clients, audit firms, and third parties. Each subject has its own opinion on determining influencing factors and their relationship. This study aims to investigate the determining factors of audit fees and audit quality in Vietnam. Using random data collection, a questionnaire was created on Google forms and sent to auditors from the 4th quarter of 2020 to the end of the 1st quarter of 2021. 267 valid auditors’ responses in 28 audit firms were used for data analysis. Exploratory factor analysis (EFA) was used to determine relationships between observed variables and factors. The measurement model and recommended hypotheses were confirmed by structural equation modeling (SEM) using SPSS 26 and AMOS 26. The study results show that contract types and audit complexity, audit firms’ reputation, size, and risk significantly impact audit fees and audit quality. In addition, the specialization of the audit firms does not have a positive effect on audit quality but on audit fees. The audit tenure has no statistical impact on audit fees and audit quality. Notably, audit fees statistically affected audit quality. Several implications can be applied, such as increasing the firm size, performing the procedures in response to audit risk, separating audit contract types, and determining the complexity of audit projects and specialties.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/16665/PPM_2022_02_Van.pdfaudit firms’ reputationaudit firms’ sizeaudit riskauditors’ perceptionsdeveloping country |
| spellingShingle | Hau Nguyen Van Hai-Phan Thanh Cuong Nguyen Thanh Diep Nguyen Ngoc Giang Ha Hai Study on factors affecting audit fees and audit quality through auditors’ perceptions: Evidence from an emerging economy Problems and Perspectives in Management audit firms’ reputation audit firms’ size audit risk auditors’ perceptions developing country |
| title | Study on factors affecting audit fees and audit quality through auditors’ perceptions: Evidence from an emerging economy |
| title_full | Study on factors affecting audit fees and audit quality through auditors’ perceptions: Evidence from an emerging economy |
| title_fullStr | Study on factors affecting audit fees and audit quality through auditors’ perceptions: Evidence from an emerging economy |
| title_full_unstemmed | Study on factors affecting audit fees and audit quality through auditors’ perceptions: Evidence from an emerging economy |
| title_short | Study on factors affecting audit fees and audit quality through auditors’ perceptions: Evidence from an emerging economy |
| title_sort | study on factors affecting audit fees and audit quality through auditors perceptions evidence from an emerging economy |
| topic | audit firms’ reputation audit firms’ size audit risk auditors’ perceptions developing country |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/16665/PPM_2022_02_Van.pdf |
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