Does Audit Risk Affect The Audit Fee?

Ahmad Muhajir

2018

Abstract

The risk assessment procedure is the most significant procedure in a general audit. Risk assessment is commonly used to assess the risks of any potential material misstatement. In assessing risk, an auditor considers three major components consisting of inherent risk, control risk, and detection risk. This research aims to examine empirically whether these three audit risk components significantly affect the audit fee. The three components of audit risk can be considered by an auditor at a public accountancy firm in performing audit planning, such as determining the time and budget plan, the number of auditors assigned to the fieldwork, and the audit scope to collect relevant audit evidence. Therefore, the auditor at a public accounting firm can determine the audit fee suitable for the job. This study used managers and partners from a public accounting firm in East Java that are registered on the public accounting firm directory published by IICPA. The samples taken for this study are from 86 audit managers and audit partners. This study used inherent risk, control risk, and detection risk as independent variables and the audit fee as the dependent variable. In this research, a T-test was used to identify the effect of independent variables on the dependent variable with the assistance of SmartPLS 3.0 for Windows.

Paper Citation

in Harvard Style

Muhajir A. (2018). Does Audit Risk Affect The Audit Fee?.In Proceedings of the Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study - Volume 1: JCAE Symposium, ISBN 978-989-758-339-1, pages 475-480. DOI: 10.5220/0007017104750480

in Bibtex Style

@conference{jcae symposium18,
author={Ahmad Muhajir},
title={Does Audit Risk Affect The Audit Fee?},
booktitle={Proceedings of the Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study - Volume 1: JCAE Symposium,},
year={2018},
pages={475-480},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007017104750480},
isbn={978-989-758-339-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the Journal of Contemporary Accounting and Economics Symposium 2018 on Special Session for Indonesian Study - Volume 1: JCAE Symposium,
TI - Does Audit Risk Affect The Audit Fee?
SN - 978-989-758-339-1
AU - Muhajir A.
PY - 2018
SP - 475
EP - 480
DO - 10.5220/0007017104750480