Open AccessInternal Audit Function and Audit Fees: Evidence from Nigeria
Author(s) -
Muqaddam Oyetunji Ali,
Wan Amalina Wan Abdullah
Publication year - 2021
Publication title -
li falah
Language(s) - English
Resource type - Journals
eISSN - 2549-6085
pISSN - 2541-6545
DOI - 10.31332/lifalah.v6i1.2902
Subject(s) - internal audit , accounting , audit , business , joint audit , audit evidence , walk through test , chief audit executive , audit plan , external auditor , information technology audit
The purpose of this study is to analyse the relationship between audit fees and internal audit function in the Nigerian listed companies. This study observes 60 non-financial firms over four years (2012 to 2015) and uses random effect regression model to examine the hypothesis. The result of the study found internal audit to be significantly related with amount of audit fees paid by the listed firms. Specifically, this study found internal audit expertise and size of internal audit unit to have a positive and significant relationship with audit fees while no relationship was documented between internal audit certificate and the amount of audit fees. The study concludes that company with effective and adequate internal audit unit tend to pay higher audit fees to the external auditors.