IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 9 NO. 4 2023

---

Determinants of Audit Fees in Nigerian Consumer Goods Sector

Ogiriki, Tonye PhD. and Erebi, Mathew Gospel

---

Abstract

The purpose of this study is to assess the determinants of audit fees among consumer goods companies publicly listed on the floor of the Nigerian Exchange Group (NGX). Secondary data of firm size, age and profitability (independent variables), and audit fee (dependent variable) from the chosen consumer goods firms in Nigeria's annual reports and accounts from 2012-2022. “Descriptive statistics (mean, median, standard deviation, skewness, kurtosis, and Karl Pearson correlation); diagnostic statistics (variance inflation factor, Breusch Pagan-Cook test for heteroskedasticity, Ramsey RESET test); and inferential statistics (Chi square test, Fisher's exact test, and t-test) were used to analyse the data;” and principal component analysis) and inferential statistics (ordinary least square). Generally, the results showed that firm size and profitability are the measure determinants of audit fees while firm age do not determines audit fees. It is therefore it was recommended that consumer goods companies need to enhance the size and profitability (return on assets).

keywords:

Audit Fees, firm age, Profitability, Firm Size, consumer goods,

---

References:

Abubakar, U. M. (2016). Determinants of audit fees in listed food and beverages firms in Nigeria. MSc
Dissertation, Ahmadu Bello University, Zaria.

Agustia, Y. P., & Suryani, E. (2018). Pengaruh Ukuran Perusahaan, Umur Perusahaan, Leverage, Dan
Profitabilitas Terhadap Manajemen Laba. Jurnal ASET
(Akuntansi Riset).

Al-Harshani, M. O. (2008). The pricing of audit services: Evidence from Kuwait. Managerial Auditing
Journal, 23(7), 685–696. https://doi.org/10.1108/02686900810890643.

Almeida, B., & Silva, A. (2020). Audit fees and financial crisis: Evidence from the Spanish
manufacturing industries. Contaduriay Administracion, 65(1), 1-22.
doi:10.22201/fca.24488410e.2020.1909.

DOWNLOAD PDF

---

Back