CAMEROONIAN AUDIT LANDSCAPE: DECIPHERING THE INFLUENCERS ON AUDIT FEE STRUCTURES
Abstract
This study delves into the intricate dynamics of external audit fees, a subject of profound interest to both companies and auditors. While companies aspire for cost-effective audits, audit firms seek to maximize their service charges. The determination of audit fees holds significance for national and international professional bodies as it sets the foundation for fee structures. Simunic's seminal work in 1980 initiated an empirical examination of audit fee determinants in the private sector, focusing on publicly quoted companies. His research underscored that audit fees are influenced by factors such as auditee size, operational complexity, and challenges in financial statement auditing.
The study underscores the heightened complexity and challenges in managing companies, particularly financial institutions, on a global scale. Notably, the Enron scandal in 2000, which deeply rattled the auditing profession, highlighted the critical issue of auditor independence. Despite earning substantial audit fees, Enron's auditor, Arthur Andersen, failed to uphold its professional responsibilities in auditing the company's financial statements. This catastrophe raises serious questions about the integrity of certified public accountants serving as auditors.
This research sheds light on the multifaceted landscape of audit fees, exploring the various determinants and their implications. The Enron and WorldCom scandals serve as cautionary tales, emphasizing the need for robust oversight and ethical conduct in the auditing profession.
Keywords:
Audit Fees, Determinants, Auditor Independence, Enron Scandal, Financial InstitutionsDownloads
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Copyright (c) 2023 Michael Fossung Ngwa
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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