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Audit Fees after IFRS Adoption: Evidence from Malaysia

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  • Najihah Yaacob
  • Ayoib Che-Ahmad

Abstract

The new IFRS demand detailed disclosure, which requires more effort and time to conduct an audit engagement. Moreover, the report by the Institute of Chartered Accountants in England and Wales highlights that among the major IFRS related costs is the increment in auditing costs. Thus, the question of whether IFRS adoption in Malaysia would affect audit fees is questionable. An advanced data structure, panel data analysis, for a 5-year period (2004–2008) was utilized. The panel data regression results revealed a significant increase in the audit fees in the post-IFRS adoption period. This study provides evidence concerning the complexity of the new and amended IFRS, which results in auditors having to increase audit pricing to compensate for the increased audit effort. Copyright Eurasia Business and Economics Society 2012

Suggested Citation

  • Najihah Yaacob & Ayoib Che-Ahmad, 2012. "Audit Fees after IFRS Adoption: Evidence from Malaysia," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 2(1), pages 31-46, June.
    • Handle: RePEc:spr:eurasi:v:2:y:2012:i:1:p:31-46
    DOI: 10.14208/BF03353806
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    References listed on IDEAS

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    Cited by:

    1. Kogilavani Apadore & Thanaletchumi R. Letchumanan, 2016. "Determinants of Audit Fees among Public Listed Companies in Malaysia. A Theoretical Model," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(2), pages 169-174, April.
    2. Ishaq Ahmed Mohammed & Ayoib Che-Ahmad & Mazrah Malek, 2018. "Shareholder’s involvement in the audit committee, audit quality and financial reporting lag in Nigeria," Business and Economic Horizons (BEH), Prague Development Center, vol. 14(2), pages 355-374, April.
    3. Alhassan Musah & Fred Kwasi Anokye & Erasmus Dodzi Gakpetor, 2018. "The Effects of IFRS Adoption and Big 4 Audit Firms On Audit and Non-Audit Fees: Evidence from Ghana," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 17(3), pages 330-352, September.
    4. Fakhroddin MohammadRezaei & Omid Faraji & Zabihollah Rezaee & Reza Gholami-Jamkarani & Mehdi Yari, 2024. "Substantive or symbolic compliance with regulation, audit fees and audit quality," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(1), pages 32-51, March.
    5. Rabiu Saminu Jibril, 2019. "The Impact of International Financial Reporting Stanadard (IFRS) Adoption on Accounting Quality in Nigerian Listed Money Deposit Banks," Applied Finance and Accounting, Redfame publishing, vol. 5(1), pages 49-57, February.
    6. Minjung Kang & Jung‐wha Lee & Mihye Ha & Moon‐Kyung Cho, 2021. "Impact of IFRS adoption on audit pricing: evidence from audit hours and unit audit price in the Korean audit market," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(2), pages 3517-3564, June.

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    More about this item

    Keywords

    Audit Fees; Malaysia; IFRS; Panel Data Analysis; Fixed Effects Model; M42;
    All these keywords.

    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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