Title: EXTREME INFLUENCE OF CEO PAY CUT AND AUDIT COMMITTEE ON AUDIT FEE
Author: AGENG INABHIMANTRA
Affiliations : Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia
Publisher: Universitas Airlangga
Abstract
Audit fees are costs incurred by the company to the auditor to carry out an audit of the company's financial reports. Several factors are considered by auditors in assessing company risk, including extreme CEO pay cuts and audit committees. When the auditor's risk preference for the company increases, they will carry out additional tests to ensure that the financial statements are presented fairly and this will affect the audit fee. This research aims to empirically test the influence of extreme CEO pay cuts and audit committees on audit fees. The population used in this research were manufacturing companies listed on the Indonesia Stock Exchange in 2014-2016 with a total of 428 companies and a sample of 150 companies was obtained. Data analysis uses multiple linear regression. Based on the results of statistical tests, it was 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/
