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Determinants of audit fees of listed South African companies
This paper identifies the statistically significant determinants for audit fees in the South African market by regressing audit fees against a selected set of determinant variables. This study is not the first investigating the South African market and so broadens the existing body of research both...
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| Format: | Thesis |
| Language: | English |
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Department of Finance and Tax
2015
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| _version_ | 1867613230542618624 |
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| access_status_str | Open Access |
| author | Davidson, Dhanyal |
| author2 | West, Darron |
| author_browse | Davidson, Dhanyal West, Darron |
| author_facet | West, Darron Davidson, Dhanyal |
| author_sort | Davidson, Dhanyal |
| collection | Thesis |
| description | This paper identifies the statistically significant determinants for audit fees in the South African market by regressing audit fees against a selected set of determinant variables. This study is not the first investigating the South African market and so broadens the existing body of research both within the country as well as the global body of research. Determinant variables identified in prior research across the globe were used to establish the existence of a relationship in the local market. This study further extended the local body of research by considering the implication of audit timing and location on the audit fee as well as using more recent data. A positive statistically significant relationship was found between audit fees, asset value, proportion of assets held as inventory and accounts receivables and the number of subsidiaries. In contrast to prior local research, results showed that a large audit firm fee premium did not exist. This was shown to be due to the commoditisation of auditing, cost pressures from companies and increased competition within the audit market. Audits within the Gauteng region were priced at a premium to other provinces whilst the timing of the audit has a statistically significant impact on the audit fee. The validity of the model has improved in comparison to prior South African studies as a result of audit fees being further driven by audit complexity than by size of the auditee. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/15474 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:32:50.328Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2015 |
| publishDateRange | 2015 |
| publishDateSort | 2015 |
| publisher | Department of Finance and Tax |
| publisherStr | Department of Finance and Tax |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/15474 Determinants of audit fees of listed South African companies Davidson, Dhanyal West, Darron Financial Management This paper identifies the statistically significant determinants for audit fees in the South African market by regressing audit fees against a selected set of determinant variables. This study is not the first investigating the South African market and so broadens the existing body of research both within the country as well as the global body of research. Determinant variables identified in prior research across the globe were used to establish the existence of a relationship in the local market. This study further extended the local body of research by considering the implication of audit timing and location on the audit fee as well as using more recent data. A positive statistically significant relationship was found between audit fees, asset value, proportion of assets held as inventory and accounts receivables and the number of subsidiaries. In contrast to prior local research, results showed that a large audit firm fee premium did not exist. This was shown to be due to the commoditisation of auditing, cost pressures from companies and increased competition within the audit market. Audits within the Gauteng region were priced at a premium to other provinces whilst the timing of the audit has a statistically significant impact on the audit fee. The validity of the model has improved in comparison to prior South African studies as a result of audit fees being further driven by audit complexity than by size of the auditee. 2015-11-30T13:16:14Z 2015-11-30T13:16:14Z 2015 Master Thesis Masters MCom http://hdl.handle.net/11427/15474 eng application/pdf Department of Finance and Tax Faculty of Commerce University of Cape Town |
| spellingShingle | Financial Management Davidson, Dhanyal Determinants of audit fees of listed South African companies |
| thesis_degree_str | Master's |
| title | Determinants of audit fees of listed South African companies |
| title_full | Determinants of audit fees of listed South African companies |
| title_fullStr | Determinants of audit fees of listed South African companies |
| title_full_unstemmed | Determinants of audit fees of listed South African companies |
| title_short | Determinants of audit fees of listed South African companies |
| title_sort | determinants of audit fees of listed south african companies |
| topic | Financial Management |
| url | http://hdl.handle.net/11427/15474 |
| work_keys_str_mv | AT davidsondhanyal determinantsofauditfeesoflistedsouthafricancompanies |