The Effects Of International Financial Reporting Standards (ifrs) Adoption On Audit Fees In Ethiopia - The Case Of Commercial Banks

The objective of this study is to assess the effects of mandatory adoption of IFRS on the audit rnfees of Commercial Banks (CB) in Ethiopia and it utilized correlational research design with rnquantitative data collection and analysis on the data gathered from yearly financial audit rnreports of the banks during the period of 2014 to 2018. Despite population of the study is rnlimited to existing CBs, the study employed purposive sampling technique in the selection of rnthe banks (n = 17) to comply with availability and accessibility of data that excluded the CBE rn(the only governmental bank) due to lack of complete data. The data has been analyzed with rndescriptive, independent t-test, correlation and panel regression analysis statistical techniques rnusing STATA and SPSS software packages. Findings of the study showed a significant positive rnrelationship between IFRS and audit fees which shows that IFRS adoption substantially rnincreased audit fees among commercial banks operating in Ethiopia. This is attributed to the rngeneral complexity of the IFRS adoption in Ethiopia. The study also finds that banks audited rnby the Non-GradeA audit firms experience greater audit fee increase in post IFRS period than rnthose audited by the GradeA audit firms. However, the study is limited to the Commercial rnBanks in Ethiopia, thus, future studies that include several industries might provide better rnunderstanding of the influence of IFRS adoption on audit fees.

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