Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/188337 
Year of Publication: 
2018
Citation: 
[Journal:] Pakistan Journal of Commerce and Social Sciences (PJCSS) [ISSN:] 2309-8619 [Volume:] 12 [Issue:] 1 [Publisher:] Johar Education Society, Pakistan (JESPK) [Place:] Lahore [Year:] 2018 [Pages:] 94-110
Publisher: 
Johar Education Society, Pakistan (JESPK), Lahore
Abstract: 
In this paper, we investigate the effect of board and audit committee quality on the audit fees in the context of developing country of Pakistan. We us five years data of KSE-100 index companies listed on Pakistan Stock Exchange. To draw the inference, we use the Partial Least Square based Structural Equation Modeling. We find that effective board quality (measured through board size, board independence, CEO duality, chairperson independence, board equity holding, and board diligence) is positively associated with external auditor fees. This finding suggests that, high quality board demands higher quality audit to have further assurance on the quality of financial reporting. While, we find audit committee effectiveness (measured through audit committee size, audit committee independence, and audit committee diligence) reduces the external audit fee, which supports our notion that, the high quality audit committee will ensure reliable financial reporting which reduces external auditor's efforts that result in lower audit fees.
Subjects: 
board quality
audit fees
audit committee effectiveness
partial least square
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.