THE DETERMINANT OF AUDIT FEE OF LISTED PHARMACEUTICAL FIRMS IN NIGERIA

  • Type: Project
  • Department: Accounting
  • Project ID: ACC2702
  • Access Fee: ₦5,000 ($14)
  • Pages: 104 Pages
  • Format: Microsoft Word
  • Views: 755
  • Report This work

For more Info, call us on
+234 8130 686 500
or
+234 8093 423 853

Title Page

Declaration ii

Certification iii

Dedication iv

Acknowledgement v

Table of content vi

List of Tables viii

List of Appendices ix

Abstract x

CHAPTER ONE: INTRODUCTION

1.1 Background to the study 1

1.2 Statement of the Problem 3

1.3 Research Objectives 6

Research Questions 6

1.5 Research Hypothesis 6

1.6 Scope of the Study 7

1.7 Significance of the Study 7

CHAPTER TWO: LITERATURE REVIEW

2.0 Introduction 9

2.1 Concepts of Audit and Audit Fees 9

2.2 The Audit Expectation Gap and Audit Fees 21

2.3 Factors Affecting Audit Fee 22

2.4 Theories of Auditing 28

2.5 Empirical Review 31

3.0 Summary of Literature Review 37

CHAPTER THREE: RESEARCH METHODOLOGY

3.0 Introduction 38

3.1 Research design 38

3.2 Population and Scope of the Study 38

3.3 Sample Size and Sample Technique 39

3.4 Data collection method 40

3.5 Variables definition and measurement 40

3.6 Data Analysis 43

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.1 Introduction 46 4.2 Descriptive Statistics 46

4.3 Correlation Coefficients 49

4.4 Diagnostic Tests 52

4.5 Regression Analysis and Test of Hypotheses 55

4.6 Discussion of Findings and implication of the study 62

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION

5.0 Introduction 65

5.1 Summary 65

5.2 Conclusion and Recommendation 66

5.3 Contribution to Knowledge 68

5.4 Suggestion for Further Study 68

REFERENCES 71

APPENDICES 78

LIST OF TABLES

Table 3.1 Population of the Study   39

Table 3.2 Sample Size   39

Table 4.1 Descriptive Statistics   45

Table 4.2 Correlation Matrix 48

Table 4.3 Test for Data Normality 52

Table 4.4 Variance Inflation Factor (VIF) for Multicolinearity   53

Table 4.5 Hettest, Fixed-Random Specification, Random Effect and Fixed Effect     55

Table 4.6 Generalised Least Square Regression 56










LIST OF APPENDICES

Appendix A Descriptive Statistics   78

Appendix B Pair-wise Correlation Coefficient   79

Appendix C Test for Data Normality   80

Appendix D Variance Inflation Factor for Multicolinearity   81

Appendix E Regression Analysis between Audit Fees and Audit Client Characteristics   82

Appendix F Regression Analysis between Audit Fees and Corporate Governance Codes  86

Appendix G Regression Analysis between Audit Fees and Audit Firm Characteristics   89 

  ABSTRACT

This study is aimed at ascertaining the effect of audit client characteristics, audit firm characteristics, corporate governance variables in the determination of audit fees of listed pharmaceutical firms in Nigeria. Panel research design was adopted for this study on  a population of eleven (11) listed pharmaceutical firms in Nigeria, out of which seven (7) firms were sampled for the study using purposive sampling technique for the period of six years from 2012-2017. Secondary data obtained from the published annual accounts and reports of Seven (7) listed pharmaceutical firms were used for this study. Descriptive and correlation analysis were also used to analyse the relationship between the independent variables (audit client size, profitability inherent risk, level of debt, board size, board independence, board diligence, audit tenure, audit type) in the three models with audit fee. Thereafter, multiple regression analysis was conducted using pooled ordinary least squares and the panel estimated generalized least squares. The result for audit firm characteristics revealed that there is a positive significant relationship between audit client size and audit fees; while profitability and level of debt of audit clients have an insignificant negative effect on audit fee. However, audit client’s inherent risk of has a positive insignificant effect on audit fees. This study also reveals the result of corporate governance variables that board diligence has a positive significant effect on audit fees, while board size and board independence have a negative insignificant effect on audit fees. The result from audit firm characteristics and audit fees revealed that audit tenure has a significant positive effect on audit fees, while audit type has a positive insignificant effect on audit fees. However, there are several limitations faced in this study which included the generalisation of the research finding and measurement tools used to define the independent variables. This study provides important insight on the determinants which are significantly related to audit fees paid by listed pharmaceutical firms in Nigeria and charged by the auditors which helps auditors in pricing the audit services appropriately. Also, regulatory bodies can use this research to regulate the practice of audit pricing.


THE DETERMINANT OF AUDIT FEE OF LISTED PHARMACEUTICAL FIRMS IN NIGERIA
For more Info, call us on
+234 8130 686 500
or
+234 8093 423 853

Share This
  • Type: Project
  • Department: Accounting
  • Project ID: ACC2702
  • Access Fee: ₦5,000 ($14)
  • Pages: 104 Pages
  • Format: Microsoft Word
  • Views: 755
Payment Instruction
Bank payment for Nigerians, Make a payment of ₦ 5,000 to

Bank GTBANK
gtbank
Account Name Obiaks Business Venture
Account Number 0211074565

Bitcoin: Make a payment of 0.0005 to

Bitcoin(Btc)

btc wallet
Copy to clipboard Copy text

500
Leave a comment...

    Details

    Type Project
    Department Accounting
    Project ID ACC2702
    Fee ₦5,000 ($14)
    No of Pages 104 Pages
    Format Microsoft Word

    Related Works

    ABSTRACT Working capital management involves the management of the most liquid resources of the firm which includes cash and cash equivalents, inventories, trade debtors and other receivables. Most firms do not ensure optimal level of working capital and this has been a major obstacle to their overall profitability. The study examined the impact... Continue Reading
    ABSTRACT Working capital management involves the management of the most liquid resources of the firm which includes cash and cash equivalents, inventories, trade debtors and other receivables. Most firms do not ensure optimal level of working capital and this has been a major obstacle to their overall profitability. The study examined the impact... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1       BACKGROUND TO THE STUDY The term leverage is used to represent the proportionate relationship between debt and equity (Pandey, 2010). The concept used to study the effect of various mix of debt and equity on the shareholders return and the risk in the capital structure of a firm is known as leverage (Bhanu,... Continue Reading
    ABSTRACT The broad objective of this study was to provide empirical evidence on the existence of the determinant of Audit Quality in the Nigeria Private Sector and the other explanatory variables (board composition, board size, ownership concentration, and institutional ownership). The study examined a sample of 20 companies for a period of five... Continue Reading
    ABSTRACT The broad objective of this study was to provide empirical evidence on the existence of the determinant of Audit Quality in the Nigeria Private Sector and the other explanatory variables (board composition, board size, ownership concentration, and institutional ownership). The study examined a sample of 20 companies for a period of five... Continue Reading
    Abstract There exists divergence of opinion in literature on the relationship between capital structure and firms financial performance. This mix of opinions makes the direction of the relationship between debt holders and equity holders to be controversial. Therefore, this study investigated the impact of capital structure on financial... Continue Reading
    ABSTRACT There exists divergence of opinion in literature on the relationship between capital structure and firms financial performance. This mix of opinions makes the direction of the relationship between debt holders and equity holders to be controversial.... Continue Reading
    CHAPTER ONE 1.1 BACKGROUND OF THE STUDY This issue of corporate governance mechanisms and earnings management has received considerable attention in recent years from academics, market participants and regulation. It continues to receive... Continue Reading
    Abstract This research  examine the impact of dividend policy decision on corporate performance of listed firms in Nigeria. It aims to ascertain if there is any significant relationship between dividend yield and share price of listed firms in Nigeria and determine the impact of retained earnings ratio on the share price of Nigerian banks. The... Continue Reading
    ABSTRACT This study examined the effect of board nationality and ethnic diversity on firms’ performance in the Nigeria stock exchange. With the aim of investigating the level of influence ethnic diversity and board nationality would affect firm performance in terms of profitability and growth in a developing economy, the study made use of ROA,... Continue Reading
    Call Us
    Get this work
    whatsappWhatsApp Us