The effects of IFRS adoption and Big 4 audit firms on audit and non-audit fees: Evidence from Ghana
Vol. 17, No. 3/2018 , p330..352
Author(s):
Alhassan Musah
Fred Kwasi Anokye
Erasmus Dodzi Gakpetor
Keywords:
International Financial Reporting Standards, Audit fees, Non-audit fees, Big4, Ghana National Accounting Standards
Abstract:
The study was conducted to examine the effect of IFRS adoption on audit and non-audit fee and also the relationship between the big4 audit firm and audit and non-audit fees. Using a sample of financial and non-financial firms in Ghana, the results show that IFRS adoption has a positive and significant relationship with audit and non-audit fees post IFRS adoption. The results further revealed that there is positive association between the year of IFRS adoption (transition period) and audit and non-audit fees. On the big4 audit firms, the results show that the big4 charge higher audit and non-audit fees than non-big4 as there was a positive and significant relationship between Big4 and audit and non-audit fees. The results support the argument that the adoption of IFRS increased the complexities of financial reporting and audit risk resulting in a higher audit and non-audit fees charged during the transition period and post IFRS adoption. The paper extends previous studies on the subject matter by including the year of IFRS adoption and non-audit fees within the context of a developing economy with weak financial regulatory regime.
Download:
http://online-cig.ase.ro/jcig/art/17_3_2.pdf
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