Factors Affecting External Audit Fee: A Survey of Mining Sector Companies in Indonesia
DOI:
https://doi.org/10.58344/jws.v1i12.125Keywords:
Profitability, Company Complexity, Audit Committee, Company Size, Financial AccountingAbstract
Introduction: This study aims to examine the effect of Profitability, Company Complexity, Audit Committee, Public Accounting Firm Size, Company Risk, and Company Size on External Audit Costs. Method: The samples used in this study were 23 mining companies listed on the Indonesia Stock Exchange (IDX) from 2016 to 2020. The sampling technique used was a purposive sampling method. Secondary data in this study is based on Annual Reports published on the official website of the IDX and the official website of the sample companies. Result: The results of this study indicate that the significance value is 0.000, which means it is smaller than 0.05 (0.000 <0.05), and the calculated F is greater than the F table (16.981> 2.1837), so that it is obtained that simultaneously or together -the same independent variables (profitability, complexity) of the company, audit committee, KAP size, company risk, and company size) have a significant effect on the dependent variable (external audit fees). Conclusion: (1) Profitability has no effect on External Audit Costs, (2) Company complexity has a significant positive effect on External Audit Costs, (3) Audit Committee has no effect on External Audit Costs, (4) Size of the Public Accounting Firm has a significant positive effect. Against External Audit Costs, (5) Company Risk does not affect External Audit Costs, and (6) Company Size has a significant positive effect on External Audit Costs.
References
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Cristansy, J., & Ardiati, A. Y. (2018). Pengaruh kompleksitas perusahaan, ukuran perusahaan, dan ukuran kap terhadap fee audit. Media Riset Akuntansi, Auditing & Informasi, 30(2), 198–211.
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MAKs, R. P. S. E., & Ak, C. A. (2019). Pemeriksaan Akuntansi: Dan Contoh Kasus di Indonesia. PT. Scopindo Media Pustaka.
Manossoh, H. (2016). Good Corporate Governance untuk meningkatkan kualitas laporan keuangan. PT. Norlive Kharisma Indonesia.
Mohammed, N., & Saeed, A. (2018). Determinants of Audit Fees?: Evidence from UK Alternative Investment Market. Academic Journal of Nawroz University, 7(3), 34–47. https://doi.org/10.25007/ajnu.v7n3a198
Rizki, C. N., Justinia Castellani, S. E., & MSi, A. K. (2022). Pengaruh Integritas Dan Kompetensi Auditor Terhadap Kualitas Hasil Audit (Studi Kasus Pada Kantor Akuntan Publik Kota Bandung yang Terdaftar di Otoritas Jasa Keuangan). Fakultas Ekonomi dan Bisnis.
Rusmanto, T., & Waworuntu, S. R. (2015). Factors Influencing Audit Fee in Indonesian Publicly Listed Companies Applying GCG. Procedia - Social and Behavioral Sciences, 172, 63–67. https://doi.org/10.1016/j.sbspro.2015.01.336
Tang, J., & Karim, K. E. (2019). Financial fraud detection and big data analytics – implications on auditors’ use of fraud brainstorming session. Managerial Auditing Journal, 34(3), 324–337. https://doi.org/10.1108/MAJ-01-2018-1767
Adelopo, I., Jallow, K., & Scott, P. (2012). Multiple large ownership structure, audit committee activity and audit fees: Evidence from the UK. Journal of Applied Accounting Research, 13(2), 100–121. https://doi.org/10.1108/09675421211254821
Arief, R. (2016). Peran Audit Internal Atas Kualitas Pemeriksaan Laporan Keuangan yang Dilakukan oleh Audit Eksternal pada sebuah Perusahaan. Jurnal Ekonomi Universitas Esa Unggul, 7(01), 78768.
Cristansy, J., & Ardiati, A. Y. (2018). Pengaruh kompleksitas perusahaan, ukuran perusahaan, dan ukuran kap terhadap fee audit. Media Riset Akuntansi, Auditing & Informasi, 30(2), 198–211.
Dabor, A. O., & Benjamine, U. (2018). Abnormal Audit Fee And Audit Quality: A Moderating Effect Of Firm Characteristics. Sriwijaya International Journal of Dynamic Economics and Business, 1(4), 327. https://doi.org/10.29259/sijdeb.v1i4.327-340
Lai, Y.-Y., & Chang, F.-H. (2013). Audit Premium, Brand Name Reputation, and Industrial Specialist: An Empirical Study of Private Universities and Colleges in Taiwan. Asian Journal of Finance & Accounting, 5(2), 305. https://doi.org/10.5296/ajfa.v5i2.4501
MAKs, R. P. S. E., & Ak, C. A. (2019). Pemeriksaan Akuntansi: Dan Contoh Kasus di Indonesia. PT. Scopindo Media Pustaka.
Manossoh, H. (2016). Good Corporate Governance untuk meningkatkan kualitas laporan keuangan. PT. Norlive Kharisma Indonesia.
Mohammed, N., & Saeed, A. (2018). Determinants of Audit Fees?: Evidence from UK Alternative Investment Market. Academic Journal of Nawroz University, 7(3), 34–47. https://doi.org/10.25007/ajnu.v7n3a198
Rizki, C. N., Justinia Castellani, S. E., & MSi, A. K. (2022). Pengaruh Integritas Dan Kompetensi Auditor Terhadap Kualitas Hasil Audit (Studi Kasus Pada Kantor Akuntan Publik Kota Bandung yang Terdaftar di Otoritas Jasa Keuangan). Fakultas Ekonomi dan Bisnis.
Rusmanto, T., & Waworuntu, S. R. (2015). Factors Influencing Audit Fee in Indonesian Publicly Listed Companies Applying GCG. Procedia - Social and Behavioral Sciences, 172, 63–67. https://doi.org/10.1016/j.sbspro.2015.01.336
Tang, J., & Karim, K. E. (2019). Financial fraud detection and big data analytics – implications on auditors’ use of fraud brainstorming session. Managerial Auditing Journal, 34(3), 324–337. https://doi.org/10.1108/MAJ-01-2018-1767
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