Factor Affecting Audit Fees of Listed Companies on The Thai Stock Exchange

Abstract

The objective of this research is to study the factor which affects audit fees of listed companies on the Thai stock exchange including company size, company risk, business complexity, corporate credibility, good corporate governance assessment results, return on assets, return on equity, tangible fixed assets, liquidity, non-current liabilities to total liabilities, operating results, and audit firm characteristics and audit fees. Quantitative research method was applied for the study. Data was collected from 80 firms out of 792 listed companies of Thai stock exchange between 2015 – 2019. The data was collected 5 years continuously. There were 400 samples in total. Descriptive statistics, one-way anova, t-test, and simple regression analysis were applied at the level of significance 0.01 The result revealed that the factors affecting audit fees were company size, company risk, business complexity, corporate credibility, good corporate governance assessment results, tangible fixed assets, liquidity, non-current liabilities to total liabilities and accounting firm at the level of significance 0.01. The paper aims for betterinsights into audit remuneration. The result will be applied as a guideline for planning improvement and determining reasonable audit fees.