Title

The Association Between Audit Committee Financial Expert Characteristics and Audit Fees.

Authors

Omar, Ayishat; Thiruvadi, Sheela; Makkawi, Bilal; Carter, Kelly E.

Abstract

Using a sample of 136 Fortune 500 companies for the year 2011 (Post-Dodd Frank Act of 2010 has increased additional scrutiny on the monitoring activities of the audit committee members), we investigate whether certain characteristics of ACFE (number of financial experts, tenure, age, education, and gender) have contributed to increase in audit fees. We assume that audit efficiencies occur in audits of firms with certain ACFE characteristics, possibly contributing to increases in audit coverage and subsequent increase in audit fees. We find that older female ACFE tend to ask for higher audit coverage leading to increased audit fees thereby influencing audit quality.

Subjects

AUDITING fees; AUDIT committees; AUDITORS; FORTUNE 500 companies

Publication

American Journal of Management, 2022, Vol 22, Issue 2, p85

ISSN

2165-7998

Publication type

Academic Journal

DOI

10.33423/ajm.v22i2.5447