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The Effects of IFRS Adoption and Big 4 Audit Firms On Audit and Non-Audit Fees: Evidence from Ghana

Author

Listed:
  • Alhassan Musah

    (Dominion University College, Ghana)

  • Fred Kwasi Anokye

    (University of Ghana, Legon)

  • Erasmus Dodzi Gakpetor

    (Dominion University College, Ghana)

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.

Suggested Citation

  • 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.
    • Handle: RePEc:ami:journl:v:17:y:2018:i:3:p:330-352
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    References listed on IDEAS

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    1. 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.
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    Cited by:

    1. Marta Tache & Rafaela Cazazian & Valentin Moldoveanu, 2020. "Financial Audit And Financial Reporting Under Ifrs In The Context Of Coronavirus," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 6, pages 103-111, December.

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    More about this item

    Keywords

    International Financial Reporting Standards; Audit fees; Non-audit fees; Big4; Ghana National Accounting Standards;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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