European Online Journal of Natural and Social Sciences: Proceedings
Abstract
One of the issues that most companies and the independent auditors encounter refers to determining the amount of audit fees to the conclusion of contract for the annual financial statement audit of companies. The auditor should naturally consider the probability of audit duration more than anything. Since the determination of the exact time to do work (before starting work) is not possible, auditors only rely on providing an estimate of fee. This estimate is generally determined by some effective factors in the extent of audit work. This study aims to investigate the effective factors on determination of the company's audit fee and data of accepted companies in the stock exchange in 2000 to 2007 is used. Among the 1380 companies, the 30 industries existed in stock exchange are used. Multivariate regression model to analyze the data and the t-student test to test the meaningfulness of hypotheses are used. The results indicate that the factors of company size, the ratio of debt and the auditor type on audit fees are effective in determining audit fees and inherent risk has no influence on determining audit fees