Factors affecting audit fees among financial institutions listed in Bursa Malaysia / Nur Ayuni Ilyasnur

The purpose of this study is to examine the factors determinants of audit fees among listed financial companies in Malaysia. A theoretical framework was constructed to test the relationship between audit fee determinants and audit fees with the adoption of five independent variables which are audit client’s size, audit client’s complexity, audit client’s profitability, audit client’s risk and auditor BIG4 firm. The analysis was based on a sample of listed financial companies covering a time period of six years comprising of year 2011 to year 2016. Primary and secondary data collection method was employed in this study to obtain data from annual reports published by Bursa Malaysia and data stream respectively. The data collected were subsequently used to analyse the relationship between the five selected independent variables and audit fees by conducting multiple regression analysis. The results indicate that an audit fee was having a positive relationship by audit client’s size, complexity, risk and big4 while had negative relationship towards profitability. In which audit client’s size contribute the most significantly then other variables in audit fees. Altogether the results provide further evidence on audit fee determinants whilst adding initial insight into the area of audit fee determinants for financial institution.