For correspondence:-
Received: January 27, 2022 Accepted: March 23, 2022 Published: March 31, 2022
Citation: Determinants of Audit Fees in Nigerian Banks. Account Tax Rev 2007; 6(1):30-47 doi:
© 2007 The authors.
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Abstract
The study examined factors that influenced the amount of audit fees paid by ten Nigerian banks during the fifteen years 2006-2020. Client board-specific attributes (board size and board independence), client firm-specific attributes (bank size, leverage and profitability) and audit firm-specific attributes (audit tenure and joint audit) are used as proxy variables of audit fee determinants. The analytical technique adopted for the study was pooled ordinary least squares regression. Results revealed that board independence, size and leverage have a positive, while joint audit has a negative and significant effect, on audit fees. The study, however, could not confirm profitability, audit tenure and board size as important determinants of audit fees in Nigeria as the results produced an insignificant relationship. It is recommended that corporate boards and regulatory agencies in Nigeria take into consideration the four significant audit fee determinant variables when corporate governance policies, particularly auditors’ remuneration, are formulated as these variables are capable of influencing the quality of audit work.
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