Browsing by Author "Getahun Shiferaw"

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    Determinants of Audit Fee in Ethiopian Manufacturing Share Companies of Large Tax Payers
    (Addis Ababa University, 2019-06) Getahun Shiferaw; P.Laxmikantham
    This was informed by the fact that most research on audit fee models has been done on developed countries while little published research is available on developing countries like Ethiopia. Even more scarce is studies on audit fees determinants in Ethiopian manufacturing share companies. As such, this paper is to address this imbalance by having a closer look on audit fee determination of MSCs categorized under large tax payers. So, the purpose of this thesis is to provide evidence on the determinants of audit fee in Ethiopian manufacturing share companies categorized under large tax payers. The study applied explanatory research design and panel data regression analysis. In order to test the research hypotheses, secondary data was collected from a sample of fifteen large tax payers manufacturing share companies covering seven years period (2011-2017) with the total of 105 observations.. The period chosen was sufficient to obtain meaningful trend patterns on audit fees for large tax payers manufacturing share companies. In the present study, the researcher was able to examine the determinants of audit fee in manufacturing share companies of large tax payers. In this study audit fee is the dependent variable where as auditee total asset, auditee complexity, auditee risk and auditee profitability are included as independent variables. An E-Views version 9 software package was used to make regression analysis. The results of the study show that auditee’s size is important factor in determining audit fees for manufacturing share companies of large tax payers in Ethiopia due to positive relationship between this variable and audit fee. This was consistent with both the author’s expectations and the results of previous studies. A statistically significant negative relationship was found between auditee’s risk and audit fees. The results, however, did not support any relationship between auditee’s complexity and auditee’s profitability. Finally, the researcher recommends: practitioners such as audit firms, manufacturing share companies, and regulatory bodies in gauging whether audit standard benchmarks have been adhered to by audit firms. .