Show simple item record

dc.contributor.authorSingh, Harj
dc.contributor.authorWoodliff, D.
dc.contributor.authorSultana, Nigar
dc.contributor.authorNewby, R.
dc.identifier.citationSingh, H. and Woodliff, D. and Sultana, N. and Newby, R. 2014. Additional Evidence on the Relationship Between an Internal Audit Function and External Audit Fees in Australia. International Journal of Auditing. 18: pp. 27-39.

Studies examining the relationship between a firm's internal audit (IA) function and its audit fees have produced mixed results with suggestions of possible model mis-specification in these studies. Our analysis reveals that differences in significance for IA with audit fees is driven by the choice of variables proxying for firm size and other firm characteristics, suggesting that prior results are entangled with model specification issues. Specifically, when the sales variable is used as a measure of firm size, IA is insignificant (in explaining variations in audit fees) but subsequently becomes significant when assets and employees are used. To overcome the conflicting results, subsequent factor analysis supported a positive relationship between IA and audit fees. The most significant implication from this study is that previously reported relationships involving audit fees may be the outcome of the model adopted rather than the underlying relationship between the variable of interest and audit fees.

dc.subjectModel mis-specification and corporate governance
dc.subjectInternal audit
dc.subjectAudit fees
dc.titleAdditional Evidence on the Relationship Between an Internal Audit Function and External Audit Fees in Australia
dc.typeJournal Article
dcterms.source.titleInternational Journal of Auditing
curtin.departmentSchool of Accounting
curtin.accessStatusFulltext not available

Files in this item


This item appears in the following Collection(s)

Show simple item record