Title: THE EFFECT OF EXTREME CEO PAY CUT AND AUDIT COMMITTEE ON AUDIT FEE

Authors: AGENG INABHIMANTRA

Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

An audit fee is a fee paid by a company to an auditor to audit its financial statements. Auditors consider several factors when assessing company risk, including extreme CEO pay cuts and audit committees. As auditors' risk appetite increases, they will conduct additional testing to ensure the financial statements are fairly presented, which will impact audit fees. This study aims to empirically examine the effect of extreme CEO pay cuts and audit committees on audit fees. The population used in this study was 428 manufacturing companies listed on the Indonesia Stock Exchange from 2014 to 2016, resulting in a sample size of 150 companies. Data analysis used multiple linear regression. The statistical test results concluded that extreme CEO pay cuts and audit committees had no effect on audit fees.

Keywords: Audit fees, extreme CEO pay cut, audit committee

Sources: http://repository.unair.ac.id/81499/