Further Evidence on the Determinants of Municipal Audit Fees.

Key Points

• The study aims to identify factors influencing municipal audit fees by developing a new fee model.
• Developed a municipal audit fee model incorporating unique accounting variables.
• Analyzed a sample from Michigan municipalities.
• Examined the relationship between audit fees and audit adjustments, political costs, and auditor experience.
• Found a significant association between audit fees and the number of audit adjustments.
• Identified the influence of agency and political costs on fee structures.
• Highlighted the impact of auditor experience and opinion qualifications on audit fees.