IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 10 NO. 6 2024
DOI: 10.56201/jafm.v10.no6.2024.pg232.248

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The Influence of Determinants of Audit Fees on Listed Manufacturing Firms in Nigeria

S.A Akosu M.T Soomiyol, E.A Ikya and Yua Henry

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Abstract

This study examined the determinants of audit fee by listed manufacturing companies in Nigeria. Theories that relate to this study were reviewed which are Agency theory and Audit Pricing theory. The study adopts correlation research design to examine the relationship between audit fee determinants and audit fee with the adaptation of five variables which are client size, client complexity, audit firm size, audit tenure and profitability. Data were obtained from 30 manufacturing firms out of a population of 48 that were listed on the Nigeria Exchange Group from 2018-2022. Secondary data collection method was employed in this study to obtained data from annual report within the study period. The data were analyzed using linear regression and correlation analysis. Findings of the study indicated that client size was a determinant of audit fee while client complexity, audit firm size, audit tenure and profitability were not determinants of audit fee. It was also found that significant differenced exist between the examination of audit fee using multiple regression analysis and linear regression analysis. This study instructively proposed that assurance clients should devise an outline of guidelines and practices to guide activities in the manufacturing sector by monitoring the variables that impact audit fees.

keywords:

Audit firm size, Audit tenure, Audit fee, Manufacturing firm

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