The determinants and their influence on the fees charged by non-affiliated auditing firms in Metro Cebu

The determinants of audit fees have been a subject of many studies. Various studies showed different but quite a lot of factors are consistently identified. Such factors are contributed by the inherent nature of the auditee, of the engagement and those of the auditor. Data were gathered from the practitioners to find how much can be attributed by the size and other circumstances of the auditee in the ladder of fees setting. And the risks that come along with the attesting of on statements and declarations that auditors did partake in the preparation or events that auditors are independent of, where is it in the fees setting? The value the auditor gives to what the firm has, what the firm can do and what it does to become capable and competent, how much will be factored in the fees charged? The data were generated by small practitioners otherwise called the emerging of the non-big practitioners as opposed to the big firms. With the help of descriptive and correlational tools some information emerged that allow the formation of some specific findings, summative conclusions and recommendations that are trained and definitely reflective of the situs of the study-- 4 cities around Metro Cebu. So much can be done to improve the fees setting dilemma of small practitioners. The variables used were the auditee size, engagement risks and the auditor size and expertise. Chi-square tests assisted in the establishing of the association of the above-mentioned independent variables with charging of audit fees. The association is there, the influence can not be far behind. The study will be a catalyst on more factor-based charging of fees