Determinants of audit fees: evidence from an emerging economy

This study sets out to examine factors influencing audit fees paid by non-financial companies listed on Abu Dhabi Stock Exchange (ADX). Data were collected from the 2011 annual and corporate governance reports published by the Emirati non-financial companies listed on ADX. Backward regression analysis is employed to assess the association between audit fees and certain company’s attributes. The findings show a direct relationship between audit fees and each of corporate size, business complexity and audit report lag variables. An inverse relationship has been detected between audit fees and each of industry type and audit committee independence. The findings also revealed that audit fees are not significantly influenced by company’s profitability, risk, and status of audit firm