August 12, 2025

Factors Affecting the Amount of Audit Fees

Key Points

Audit fees increase significantly with higher company risk and robust internal control systems, affecting financial outcomes.
The analysis showed that company risk positively influences audit fees with significant results from a sample of 60 firms.
Using multiple linear regression analysis, the study assessed various proxies related to audit fees within Indonesia's transportation sector.
Understanding these factors is crucial for firms to manage their audit costs while ensuring compliance and transparency.

Abstract

This study aims to determine the factors that affect the amount of audit fees. The factors include company complexity, company risk and internal control. The population of this study includes transportation and logistics companies listed on the Indonesia Stock Exchange in 2021-2023. The method of determining the research sample used purposive sampling method and 60 companies were sampled. The research data analysis method uses multiple liner regression analysis. Audit fees are measured by the proxy of the natural logarithm of audit fees, company risk with the proxy debt to asset ratio, company complexity is measured by the proxy of the number of subsidiaries, and internal control is measured by the proxy of the number of internal audit activities. The results of this research data analysis can be concluded that company risk and internal control have a significant positive effect on audit fees, while company complexity has no effect on audit fees.

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