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Research Paper | Finance | Egypt | Volume 10 Issue 8, August 2021 | Popularity: 5.1 / 10

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The Role of IFRS Adoption in the Relationship between Abnormal Audit Fees and Audit Quality: An Applied Study on the Non - Financial Egyptian Listed Firms

Dina S. Fadaly

Abstract: Positive abnormal audit fees lower the quality of the audit. A high abnormal audit fee degrades the audit's quality since it jeopardizes the auditor's objectivity and impartiality. High audit fees also give auditors and clients the opportunity to establish a financial connection. A negative abnormal audit fee also degrades the audit's quality. This is because the auditor alters both the scope and tactics of the audit in accordance with the charge collected from the customer. Because of the IFRS, auditors must put up more effort by examining a larger range of accounting options and managing increasing complexity. Due to the increased audit operations required when the IFRS were implemented, audit fees have grown in many firms. As a result, the purpose of this article is to define how the implementation of IFRS has affected the correlation between abnormal audit fees and the quality of audit. The information gathered from the annual reports of the top 100 Egyptian businesses listed on the EGX for the years 2019 to 2020. The study found that IFRS had an insignificant effect on the relationship between abnormal audit fees and audit quality.

Keywords: IFRS, Adoption, Abnormal, Audit, Fees, Quality, EGX

Edition: Volume 10 Issue 8, August 2021

Pages: 1226 - 1233

DOI: https://www.doi.org/10.21275/SR23911171709

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