Determinants of Audit Fees: Evidence from an Emerging Economy

Abstract

This study sets out to examine factors influencing audit fees paid by non-financial companies listed on AbuDhabi Stock Exchange (ADX). Data were collected from the 2011 annual and corporate governance reportspublished by the Emirati non-financial companies listed on ADX. Backward regression analysis is employed toassess the association between audit fees and certain company’s attributes. The findings show a directrelationship between audit fees and each of corporate size, business complexity and audit report lag variables. Aninverse relationship has been detected between audit fees and each of industry type and audit committeeindependence. The findings also revealed that audit fees are not significantly influenced by company’sprofitability, risk, and status of audit firm