TY - GEN
T1 - Determinants of audit fees
T2 - 24th IEEE International Conference on Information Fusion, FUSION 2021
AU - Malele, Vusumuzi
AU - Letsoalo, Manthiba Elizabeth
AU - Mafu, Mhlambululi
N1 - Publisher Copyright:
© 2021 International Society of Information Fusion (ISIF).
PY - 2021
Y1 - 2021
N2 - The firm's financial characteristics affecting the audit fees are determined based on the 2099 firms listed on the Compustat database from 2009-2019. A more comprehensive view of this subject is provided by analyzing fundamental financial, statistical, and market information from thousands of companies worldwide based on the database. The best set of predictor variables are identified using descriptive statistics, correlation matrices, and exploratory data analysis. A regression model is built to test and measure the relationship and significance between these predictor variables and audit fees. Notably, results confirm that the firm financial characteristics ACT, INVT, LCT, AT, EBIT, EBITDA, and CEQ determine audit fees. Furthermore, the audit fees are negatively and significantly related to PIFO, FYEAR, EMP, and GVKEY. Previously, studies focused on determinants such as firm size, status of the audit firm, and corporate complexity. Thus, this work integrates an international financial perspective in the determination of audit fees.
AB - The firm's financial characteristics affecting the audit fees are determined based on the 2099 firms listed on the Compustat database from 2009-2019. A more comprehensive view of this subject is provided by analyzing fundamental financial, statistical, and market information from thousands of companies worldwide based on the database. The best set of predictor variables are identified using descriptive statistics, correlation matrices, and exploratory data analysis. A regression model is built to test and measure the relationship and significance between these predictor variables and audit fees. Notably, results confirm that the firm financial characteristics ACT, INVT, LCT, AT, EBIT, EBITDA, and CEQ determine audit fees. Furthermore, the audit fees are negatively and significantly related to PIFO, FYEAR, EMP, and GVKEY. Previously, studies focused on determinants such as firm size, status of the audit firm, and corporate complexity. Thus, this work integrates an international financial perspective in the determination of audit fees.
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M3 - Conference contribution
AN - SCOPUS:85123422759
T3 - Proceedings of 2021 IEEE 24th International Conference on Information Fusion, FUSION 2021
BT - Proceedings of 2021 IEEE 24th International Conference on Information Fusion, FUSION 2021
PB - Institute of Electrical and Electronics Engineers Inc.
Y2 - 1 November 2021 through 4 November 2021
ER -