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The Effect of Audit Fees on Auditors Negligence

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  • Segun Idowu Adeniyi

    (Nnamdi Azikiwe University)

Abstract

The research work examined the effect of audit fees on auditors’ negligence. Failure to report certain weaknesses because of the auditors’ negligence in his reports to management often affect the performance of corporate organizations negatively. The specific objective is to ascertain whether audit fees influences auditors’ negligence. Business analysts, Investors and Academia were used to determine the effect of audit fees on auditors’ negligence. Survey design was adopted for this study. Copies of questionnaires were administered to 115 sample respondents. Analysis of variance (ANOVA) was used to analyze data collected statistically at 5% or 0.05 level of significance. Regression analysis was used, with the aid of statistical package for social sciences (SPSS) 20.0 soft ware. The test showed that audit fees lead to auditors’ negligence. The researcher recommends that the auditing profession should make significant regulatory pronouncement in this regard. Consequently, there is a need to strengthen the capacity of the regulatory bodies and reviewthe adequacy of statutory enforcement provisions.

Suggested Citation

  • Segun Idowu Adeniyi, 2015. "The Effect of Audit Fees on Auditors Negligence," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 11(3), pages 120-126, June.
    • Handle: RePEc:dug:actaec:y:2015:i:3:p:120-126
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    File URL: http://journals.univ-danubius.ro/index.php/oeconomica/article/view/2812/2437
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    References listed on IDEAS

    as
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    3. Michael Firth, 1997. "The Provision of Non-audit Services and the Pricing of Audit Fees," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 24(3), pages 511-525.
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