TY - JOUR
T1 - The relationship between business and the audit fee
T2 - Evidence from Indonesian listed companies
AU - Krisna, Andrivan Nindya
AU - Rizki, Amalia
N1 - Funding Information:
This paper is derived from Andrivan Nindya Krisna's undergraduate Thesis at the Faculty of Economics and Business, Universitas Airlangga, Surabaya, Indonesia. We are also grateful from the comments and insight from Eka Sari Ayuningtyas and Dyah Ayu Larasati.
Publisher Copyright:
© 2020 Primrose Hall Publishing Group.
PY - 2020
Y1 - 2020
N2 - This research intends to obtain empirical evidence to determine the relationship between a business and the external audit service fee. Using the modified model from research of Simunic (1980), this research took balanced samples from 26 manufacturing firms listed on the Indonesian Stock Exchange (IDX) from the period 2014 to 2016 in order to represent the population of manufacturing firms listed in that time period. Using audit fees as dependent variable and firm size, audit complexity, audit risk, and Big-Four audit firms' premium, this research tried to find out the relationship between those variables, using multiple linear regression as the method to achieve that goal. The result of this research shows that there is a correlative relationship between firm size, audit complexity, audit risk, and 'Big-Four' audit firms' in regard to a premium positive and audit fee.
AB - This research intends to obtain empirical evidence to determine the relationship between a business and the external audit service fee. Using the modified model from research of Simunic (1980), this research took balanced samples from 26 manufacturing firms listed on the Indonesian Stock Exchange (IDX) from the period 2014 to 2016 in order to represent the population of manufacturing firms listed in that time period. Using audit fees as dependent variable and firm size, audit complexity, audit risk, and Big-Four audit firms' premium, this research tried to find out the relationship between those variables, using multiple linear regression as the method to achieve that goal. The result of this research shows that there is a correlative relationship between firm size, audit complexity, audit risk, and 'Big-Four' audit firms' in regard to a premium positive and audit fee.
KW - Audit complexity
KW - Audit fee
KW - Audit risk
KW - Big-four audit firms' premium
KW - Firm size
UR - http://www.scopus.com/inward/record.url?scp=85087088858&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:85087088858
SN - 2201-1315
VL - 13
SP - 526
EP - 540
JO - International Journal of Innovation, Creativity and Change
JF - International Journal of Innovation, Creativity and Change
IS - 4
ER -