Determinants Of External Auditors Fee In The Case Of Banking And Insurance Industries Of Ethiopia

Business Administration In Finance Project Topics

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The major objective of the study is to evaluate the Determinants of External Auditor Fee inrnbanking and insurance industries of Ethiopia from 2012-2016 years. The research methodologyrnis Quantitative research approach .this approach is used since it helps to conduct systematicrnempirical study of observable phenomena via statistical or mathematical techniques. , data wasrntaken from NBE for which regressions was used to the analysis of study. The finding shows thatrnaspect of corporate or clients sizes triggers 52 .3% positive change in the process of deciding itsrnfee for the auditor while experience of the auditor triggers by 11.12% positive change in therndecision of auditors fee through placing second as a determining factor . The finding shows thatrnaspect of Auditor size is that it portrayed by 8.66% positively which is investigated as the strongrnrelationship between audite size, and audit pricing, and determined that audit size is positivelyrnassociated with audit fees and the clients expects higher quality audits from relativelyrnexperienced and large sized audit firms . The study found that an increase in market share of thernaudit firm leads on an average increase 3.99% increase in the revenue of the audit firm .Thernstudy found that an increase in the Client Profitability between 2012 and 2016 lead to arnsignificant increase by 8.5 % in real audit fees. On the other hand, increase in the liquidity riskrnhas a significant negativity indicated by 31.9% in real external audit fees .The negatively signedrnrelationship between liquidity risk and Audit Fee shows that there is positive relationshiprnbetween liquidity risk and Audit fee. The study shows increase of the Client Complexityrnsignificantly contributed to increase Auditor fee by 2.1%.similarly,however it was foundrninsignificant with audit fee relation an increase Efficiency of the client is considered anrnimportant attribute that increase the determining amount of audit fees positively indicated byrn7.67% in real audit fees. This implies that the efficient companies have the ability to bearrnadditional charges for audit work due to their internal Efficiency. Therefore, Efficiency of thernclient has a positive correlation with the audit fees.

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Determinants Of External Auditors Fee In The Case Of Banking And Insurance Industries Of Ethiopia

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