Audit committee characteristics, internal auditors' contribution to financial statement audits and audit fees : Malaysian evidence

This paper provides empirical evidence on the impact of audit committee characteristics on the extent of internal auditor’s contribution to financial statement audits in an emerging economy. Using a cross-sectional regression model, based on Felix, Gramling and Maletta’s (2001) study, it provides evidence of a positive relationship between internal auditor contribution to financial statement audits and three dimensions of audit committee characteristics: the proportion of independent audit committee members; the extent of audit committee members’ knowledge and experience in auditing, accounting, and finance; and the extent of audit committee review of IA proposal related to program, budget and coordination. A second model examines a relationship between internal audit contribution to financial statement audits and audit fees. However, the results did not yield a significant relationship between the two variables. These results are based on a unique data set comprised of publicly available data matched with survey data from chief internal auditors or financial controllers of 90 firms listed on the Kuala Lumpur Stock Exchange (KLSE).

Internal audit attributes and external audit's reliance on internal audit : implications for audit fees

This study aims to examine two aspects of internal audit quality, namely internal audit competency and internal audit contribution to financial statement audits. Consistent with the substitution view, this study predicts a negative relationship between the competency aspects of internal audit (the tenure of the existence of internal audit in the organization, internal audit staff expertise in IT and computer skills, training hours, internal audit staff professional certifications in accounting and auditing, and internal audit staff experience in auditing) and audit fees. Second, this study tests whether the contribution of internal auditors to financial statement audit reduces audit fees. The data analysis is based on a cross-sectional regression model with observations of 73 public-listed firms in Malaysia, which include publicly available data matched with survey responses from their internal and external auditors. The results of the study suggest that the competency of internal audit, namely the tenure of the existence of internal audit in the organization, training, internal audit staff prior experience in auditing and accounting, and certifications are associated with lower audit fees. Our findings for both aspects of internal audit quality (competency and internal audit contribution) lend support to the substitution view for explaining the links between internal audit quality and audit fees.

Audit fees, auditor choice and stakeholder influence: Evidence from a family-firm dominated economy

Despite the dominance of family-owned publicly listed companies in developing economies, prior research has paid relatively little attention to this area and the socio-economic context of these countries has been mostly ignored. This study contributes to the accounting literature by providing empirical evidence of the effects of family control and ownership on audit pricing and auditor choice in a developing economy context. Using 1058 firm-year observations of publicly listed companies in Bangladesh, where family firms are the most dominant form of public companies, we find that in comparison with non-family firms, our sample family firms pay significantly lower audit fees and choose lower quality auditors. However, for export-oriented industries, family firms seem to pay significantly higher audit fees and recruit better quality auditors compared to non-family firms. Collectively, our findings have important implications for audit markets in emerging economies in which the sustainability of family firms is crucial for overall economic development.

Using consumer search cost and loyalty to explain dispersion in banking fees

Pode-se observar uma considerável dispersão entre os preços que diferentes bancos comerciais no Brasil cobram por um mesmo pacote homogêneo de serviços— dispersão esta que é sustentada ao longo do tempo. Em uma tentativa de replicar esta observação empírica, foi desenvolvido um simples modelo que lança mão do arcabouço da literatura de custos de procura (search costs) e que baseia-se também na lealdade por parte dos consumidores. Em seguida, dados de preços referentes ao setor bancário brasileiro são aplicados ao modelo desenvolvido e alguns exercícios empíricos são então realizados. Esses exercícios permitem que: (i) os custos de procura incorridos pelos consumidores sejam estimados, ao fixar-se os valores dos demais parâmetros e (ii) as correspondentes perdas de peso-morto que surgem como consequência dos custos de procura incorridos pelos consumidores sejam também estimadas. Quando apenas 80% da população é livre para buscar por bancos que cobrem menores tarifas, à taxa de juros mensal de 0,5%, o valor estimado do custo de procura médio incorrido pelos consumidores chega a 1805,80 BRL, sendo a correspondente perda de peso-morto média na ordem de 233,71 BRL por consumidor.

The effects of Medicaid physician fees on access to care for Medicaid enrollees: A systematic review

This thesis is concerned with conducting a systematic review of the literature into the effects of Medicaid physician fees on access to care for Medicaid beneficiaries. In general these fees are significantly lower than those provided by both Medicare and private insurance. A literature search was conducted via Medline and Sumsearch and seven articles were reviewed. Of these seven, only one showed that higher Medicaid physician fees resulted in higher acceptance rates of Medicaid enrollees among physicians. On the other hand, the other six articles did not show a significant effect of physician Medicaid fees on access to care. Although most of the articles did not show a significant association between physician fees and access to care, no definitive conclusions can be made until future studies are completed. ^