CORPORATE ATTRIBUTES AND AUDIT FEE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

The objective of the study is to examine the effect of firm characteristics on audit fee of listed Deposit Money Banks (DMBs) in Nigeria. Correlational research design was used for this study with an extensive reliance on secondary data. The population of the study consists of all DMBs listed on the Nigerian Stock Exchange. However, the study utilizes a sample of 10 DMBs in Nigeria selected using certain criteria. Multiple Regression Analysis using the Ordinary Least Square (OLS) technique was employed as the method of data analysis. Diagnostic analysis indicated that the regression assumptions tests such as heteroskedasticity, hausman and the Lagrangian Multiplier (LM) test for the higher order autocorrelation and the study showed that the model satisfied the OLS criterion. The findings indicated that; firstly, there is positive and significant relationship between profitability and audit fees. Secondly, there is no significant relationship between complexity and audit fees. Thirdly, study reveals that there is positive and significant relationship between audit size and audit fees. Fourthly, the study also shows that there no significant relationship between audit risk and audit fees. This shows that bank with higher performance is expected to pay higher audit remuneration. Also, bank with higher capital base is expected to pay less audit fee. The study recommends that there is need for the government to regulate audit fees within DMBs in Nigeria