Open AccessThe Impact of Corporate Governance on Auditor’s Independence and Audit Fees: An Empirical Study of Jordanian Insurance Companies Listed on Amman Stock Exchange
Author(s) -
Mohyedin Hamza
Publication year - 2018
Publication title -
international journal of economics and finance
Language(s) - English
Resource type - Journals
eISSN - 1916-9728
pISSN - 1916-971X
DOI - 10.5539/ijef.v10n4p171
Subject(s) - auditor independence , accounting , stock exchange , business , corporate governance , audit , independence (probability theory) , audit committee , external auditor , auditor's report , audit evidence , sample (material) , joint audit , finance , internal audit , statistics , chemistry , mathematics , chromatography
This study examines the impact of applying the principles of Corporate Governance on an external auditor’s independence and audit fees of over 26 Jordanian insurance companies listed on Amman Stock Exchange (ASE). Also, the study includes 6 audit firms that undertake audit missions upon these companies. To achieve the study objectives, a questionnaire has been developed for data collected and distributed on the study sample, which consists of (12) companies and (3) audit offices. As a result, (104) valid responses have been obtained. The results have showed there is a significant impact of Corporate Governance principles on auditor’s independence and audit fees.The researcher recommends encouraging the independence of members of board of directors in Jordanian insurance companies because of its core effect on external auditor’s independence.