The Impact of Enhanced Communication Requirement and other Determinants on Audit Fees
Studies generally suggest the audit report is not an effective communication tool to inform the users of Financial Statements about the audit and its process.In a move to enhance the informative value of the auditor’s report, the International Auditing and Assurance Standard Board has approved a sta...
| Main Authors: | , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2018
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| Online Access: | https://repo.uum.edu.my/id/eprint/25228/1/KMICE%202018%20223%20228.pdf |
| _version_ | 1825805247819284480 |
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| author | Ishak, Zuaini Abidin, Shamharir |
| author_facet | Ishak, Zuaini Abidin, Shamharir |
| author_sort | Ishak, Zuaini |
| collection | UUM |
| description | Studies generally suggest the audit report is not an effective communication tool to inform the users of Financial Statements about the audit and its process.In a move to enhance the informative value of the auditor’s report, the International Auditing and Assurance Standard Board has approved a standard called for an enhanced auditors’ report. While the introduction of the new report is expected to result in better financial reporting and audit quality, it may also cause auditors to incur additional audit costs due to increased audit efforts as well as reporting cost. The present study examines this possibility and based on the analysis of 261 listed companies, our results suggest that the new reporting requirement does not cause auditors to increase audit fees. Additional, the study suggests that size of the company, poor performance and ability to meet short term obligation are important determinants of audit fees.Two highly reputable audit firms namely, PWC and KPMG, are found to charge higher fees than others. The present study provides knowledge to regulators on how the auditors respond to regulatory change in the term of production cost and subsequently, would provide insight on how the change would alter the quality of audit reporting. |
| first_indexed | 2024-07-04T06:29:10Z |
| format | Conference or Workshop Item |
| id | uum-25228 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:29:10Z |
| publishDate | 2018 |
| record_format | eprints |
| spelling | uum-252282018-11-28T00:12:07Z https://repo.uum.edu.my/id/eprint/25228/ The Impact of Enhanced Communication Requirement and other Determinants on Audit Fees Ishak, Zuaini Abidin, Shamharir HD28 Management. Industrial Management Studies generally suggest the audit report is not an effective communication tool to inform the users of Financial Statements about the audit and its process.In a move to enhance the informative value of the auditor’s report, the International Auditing and Assurance Standard Board has approved a standard called for an enhanced auditors’ report. While the introduction of the new report is expected to result in better financial reporting and audit quality, it may also cause auditors to incur additional audit costs due to increased audit efforts as well as reporting cost. The present study examines this possibility and based on the analysis of 261 listed companies, our results suggest that the new reporting requirement does not cause auditors to increase audit fees. Additional, the study suggests that size of the company, poor performance and ability to meet short term obligation are important determinants of audit fees.Two highly reputable audit firms namely, PWC and KPMG, are found to charge higher fees than others. The present study provides knowledge to regulators on how the auditors respond to regulatory change in the term of production cost and subsequently, would provide insight on how the change would alter the quality of audit reporting. 2018-07-25 Conference or Workshop Item PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/25228/1/KMICE%202018%20223%20228.pdf Ishak, Zuaini and Abidin, Shamharir (2018) The Impact of Enhanced Communication Requirement and other Determinants on Audit Fees. In: Knowledge Management International Conference (KMICe) 2018, 25 –27 July 2018, Miri Sarawak, Malaysia. http://www.kmice.cms.net.my/ProcKMICe/KMICe2018/toc.html |
| spellingShingle | HD28 Management. Industrial Management Ishak, Zuaini Abidin, Shamharir The Impact of Enhanced Communication Requirement and other Determinants on Audit Fees |
| title | The Impact of Enhanced Communication Requirement and other Determinants on Audit Fees |
| title_full | The Impact of Enhanced Communication Requirement and other Determinants on Audit Fees |
| title_fullStr | The Impact of Enhanced Communication Requirement and other Determinants on Audit Fees |
| title_full_unstemmed | The Impact of Enhanced Communication Requirement and other Determinants on Audit Fees |
| title_short | The Impact of Enhanced Communication Requirement and other Determinants on Audit Fees |
| title_sort | impact of enhanced communication requirement and other determinants on audit fees |
| topic | HD28 Management. Industrial Management |
| url | https://repo.uum.edu.my/id/eprint/25228/1/KMICE%202018%20223%20228.pdf |
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