Abstract:
This research examined the determinants of audit fee using listed firms in Ghana. The justification emanates from the notion that the audit industry has been under increased pressure for their high fees paid to them by their clients and the contributory bearing on the auditor's objectivity. The research examines the impact that client characteristics, audit firm characteristics, and corporate governance have on the audit fee in Ghana. The study used panel data and employed generalised least square in analysing the secondary source of data (annual financial statements) from 2008-2017. A sample of thirty-two (32) companies was drawn from thirty-nine (39) listed firms for this study. Descriptive analysis, correlation analysis, and multiple regression were used to analyse the data. The client characteristics revealed that client size, client profitability, client risk, complexity, and industry positively and significantly impact audit fees. Audit firm size and audit tenure positively and significantly impact on audit fees for audit firm characteristics. For corporate governance variables, the board size, board independence, board diligence, CEO duality, audit committee independence, and audit committee expertise inversely and significantly effect on audit fee. The study recommends that businesses strengthen their corporate governance characteristics to bring the audit fee to a reasonable level. Also, the total of oversight board committees must be at the desired minimum as companies conformed to guidelines and directions of the regulatory establishments, and more businesses have to be invigorated to get listed so that regulations can oblige them to display appropriate conduct
