Audit Fees Determinants and Audit Quality in Ethiopian Commercial Banks
| dc.contributor.advisor | Abehodie, Wollela (PhD) | |
| dc.contributor.author | Afesha, Tamrat | |
| dc.date.accessioned | 2018-07-02T08:24:28Z | |
| dc.date.accessioned | 2023-11-08T14:37:24Z | |
| dc.date.available | 2018-07-02T08:24:28Z | |
| dc.date.available | 2023-11-08T14:37:24Z | |
| dc.date.issued | 2014-05 | |
| dc.description.abstract | The audit profession has been highly scrutinized among researchers and regulators following the fall of giant companies in the West. One of the issues that gained momentum has been to analyze the audit fee structure and the various auditor-client relationships. This study investigates the determinants of audit fees based on variables that are unique to the banking firms and considered important by regulators in a sample of Ethiopian commercial banks. The study also examined whether auditors take in to account factors considered important by the regulatory bank which result in better alignment of both the interests of auditors and the regulatory bank. Furthermore, the study investigates whether abnormally higher audit fees reduce the audit quality. The study used a panel data for eight commercial banks form the year 2004-2012. The panel fixed effect regression result revealed that bank size, liquidity, efficiency, loan growth, capital adequacy and auditor size are the main determinants of audit fees for the Ethiopian commercial banks. With regard to the factors considered important by the regulatory bank, auditors do not seem to consider credit risk in the determination of audit fees. In relation to the audit quality, the study failed to find any significant relationship between the extent of earning management through Loan Loss Provision and abnormal audit fees. This leads to conclude that auditors do not seem to compromise audit quality for the sake of securing abnormally higher audit fees. The researcher recommends auditors to further align their audit fee valuation with the interests of the regulatory bank particularly in respect of credit risk. Key words: audit fees, regulatory risks, audit quality, earning management, Loan Loss Provision | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/5324 | |
| dc.language.iso | en_US | en_US |
| dc.publisher | Addis Ababa University | en_US |
| dc.subject | Audit fees | en_US |
| dc.subject | Regulatory risks | en_US |
| dc.subject | Audit quality | en_US |
| dc.subject | Earning management | en_US |
| dc.subject | Loan loss Provision | en_US |
| dc.title | Audit Fees Determinants and Audit Quality in Ethiopian Commercial Banks | en_US |
| dc.type | Thesis | en_US |