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Determinants Of Audit Fees: Empirical Evidence From Emerging Economy
Kamal Naser* Hamed Abdullhameed** & Rana Nuseibeh***

Abstract

This study investigates the structure of audit fees in an emerging economy, Jordan. Data were collected from a sample of companies listed on the Amman Stock Exchange that forms 90% of the total population and fairly presents all industrial sectors within the economy. Consistent with previous research, the results of the analysis revealed that corporate size, status of the audit firm, industry type, degree of corporate complexity and risk are the main determinants of audit fees in the Jordanian environment. Unlike previous studies, however, variables such as corporate profitability, corporate accounting year-end and time lag between year-end and the audit report date appeared to be insignificant determinants of audit fees in the sampled companies.

Key Words:
*

Audit fees, Emerging Economy, Jordan.

S S

cientific Journal of Administrative Development Vol.5 I.A.D. 2007

Dean College of Business Administration, Al-Ain University of Science and Technology, UAE. ** Freelance Financial Analyst, Jordan. *** Link Officer, National Health Service (NHS), UK.

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Determinants Of Audit Fees: Empirical Evidence From Emerging Economy

Introduction
Although a number of studies have provided empirical evidence on the relationship between audit fees and the attributes of audited companies, most have tended to focus on developed economies (see for example: Australia: Francis, 1984; Francis and Stokes, 1986; Haskins and Williams, 1988; Craswell et al., 1995; Jubb et al., 1996; Houghton and Jubb, 1999; Craswell and Francis, 1999. Canada: Chung and Lindsay, 1988; Anderson and Zeghal, 1994. Ireland: Haskins and Williams, 1988. Japan: Taylor, 1997; Netherlands: Langendjik, 1997; New Zealand: Firth, 1985; Haskins and Williams, 1988;…...

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