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Other literature type . 2024
License: CC BY
Data sources: ZENODO
ZENODO
Other literature type . 2024
License: CC BY
Data sources: Datacite
ZENODO
Other literature type . 2024
License: CC BY
Data sources: Datacite
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EXPLORING THE NEXUS BETWEEN AUDIT FEES AND AUDIT QUALITY: EMPIRICAL ANALYSIS OF LOCAL ACCOUNTING FIRMS IN GHANA

Authors: Solberg, Horve Mishiwo;

EXPLORING THE NEXUS BETWEEN AUDIT FEES AND AUDIT QUALITY: EMPIRICAL ANALYSIS OF LOCAL ACCOUNTING FIRMS IN GHANA

Abstract

Although a number of variables, including audit committee size, gender diversity, and leverage, have been found to have some correlation with audit quality in a variety of industries, including the banking and manufacturing sectors in general, not much research of this kind has been done in relation to local accounting firms in Ghana. As a result, this study attempts to close the gap by examining, among other things, how audit fees charged by local accounting firms in Ghana affect audit quality while controlling for audit committee size, firm leverage, and audit committee gender diversity. The cross-sectional data included in this study's analysis came from the 2023 World Bank Group Country Survey. The nonparametric correlation with Kendall Tau-b revealed that audit fees demonstrated a significant and weak negative correlation with audit committee gender diversity, suggesting that the higher the audit fees, the lower the audit committee gender diversity. The fitted probit regression indicates that audit fees have a significant positive impact on audit quality, suggesting that higher audit fees produce better audit quality. Therefore, as the sole regulator of accounting practices in Ghana, the Institute of Chartered Accountants, Ghana (ICAG) should establish fair and reasonable audit fees guidelines to improve audit quality. These fees guidelines should also impose severe penalties, such as a license loss for the accounting firms, if they fail to comply with the regulated price. Furthermore, ICAG should consider other factors other than revenue of local accounting firms in the determination of appropriate audit fees

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Keywords

Audit fees, Audit quality, Probit regression, Nonparametric correlation

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
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