Artikel
Independent audit committee, risk management committee, and audit fees
This study aims to analyze the role of an independent audit committee on the relationship between the Risk Management Committee (RMC) and audit fees. We use 510 observations from 216 different companies indexed on the Indonesia Stock Exchange for 2014-2016. This study uses ordinary least square analysis to prove our hypotheses. We find that participation of the independent commissioner as an audit committee member will strengthen the relationship between RMC and audit fee. Consistent with the demand side of audit theory, our study shows that the existence of a stand-alone risk management committee and a more independent commissioner sitting on the audit committee will demand higher audit coverage. As a result, it will increase the audit fee. It occurs since the existence of a more independent audit committees could be able to objectively assess the risk as recommended by the RMC and respond to it by increasing the demand on audit coverage for higher audit quality, and hence increase the fees paid to the external auditor. These findings could contribute to the regulatory bodies in Indonesia in terms of providing empirical evidence on the relationship between board governance structure and audit pricing within non-financial industries companies.
- Language
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Englisch
- Bibliographic citation
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Journal: Cogent Business & Management ; ISSN: 2331-1975 ; Volume: 6 ; Year: 2019 ; Pages: 1-15 ; Abingdon: Taylor & Francis
- Classification
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Management
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
- Subject
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risk management committee
board risk committee
independent audit committee
audit fees
- Event
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Geistige Schöpfung
- (who)
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Larasati, Dyah Ayu
Ratri, Melinda Cahyaning
Nasih, Mohammad
Harymawan, Iman
- Event
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Veröffentlichung
- (who)
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Taylor & Francis
- (where)
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Abingdon
- (when)
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2019
- DOI
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doi:10.1080/23311975.2019.1707042
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Larasati, Dyah Ayu
- Ratri, Melinda Cahyaning
- Nasih, Mohammad
- Harymawan, Iman
- Taylor & Francis
Time of origin
- 2019
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The impact of audit committee characteristics on audit fees; evidence from Ghana
Impact of the audit committee on audit fees: A review and future research agenda
Risk management committee, independent commissioner, and audit fee: An update
Industry expertise on audit committee and audit report timeliness
Audit committee compensation, best practices and audit fees
Intangible assets, risk management committee, and audit fee
Does audit committee characteristics a driver in risk disclosure?
Audit committee effectiveness, bank efficiency and risk-taking: Evidence in ASEAN countries
Audit committee characteristics and corporate governance disclosure: evidence from Vietnam listed companies
Audit firm attributes and income smoothing: the moderating influence of audit committee accounting expertise
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