AUDIT FEE DETERMINANTS: EVIDENCE FROM QUOTED NIGERIAN INSURANCE FIRMS

Abstract

This study seeks to ascertain the determinants audit fee payable by quoted Nigerian insurance firms. It examined financial leverage, board independence, number of subsidiaries owned by auditee firms, profit-after-tax margin, ownership concentration and audit firm size as possible independent variables. It obtained five years secondary data from a sample of 24 quoted insurance firms in Nigeria that consistently published annual reports and accounts between 2016 and 2020.Data were tested using unbalanced panel data regression and Pearson correlation coefficient technique. The findings show that all the independent variables except profit-after-tax margin and ownership concentration are positively related to audit fees. It further disclosed that audit firm size significantly influences audit fee payable, and is therefore, the chief determinant of audit fee payable by quoted insurance firms in Nigeria.