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An International Meeting of American Accounting
Association
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Determinants of Audit Fees: An Empirical Study on Private Universities and Colleges in Taiwan |
Yung - Yu Lai
The Oversea Chinese University of Technology; National Yunlin University of Science & Technology
Chiaju Kuo
Mingdao University ; National Yunlin University of Science & Technology
Chung - Jen Fu
National Yunlin University of Science & Technolog
Abstract: This study examines the determinants of audit fees as for private universities and colleges in Taiwan. This empirical research differs from most of previous studies in the ways that, not only it was the first study that the effects of different types of invitation to tender were examined, but also more accurate data related audit fees were applied. The empirical results generally support the expectations. Furthermore, audit fees are higher under the circumstances of restricted invitation to tender. Another contribution of this study is that the evidence indicates that interest expense instead of debt ratio is a better proxy for audit risk to explain the audit fees. Both the more sources of revenues and the higher the ratio of net income to total ordinary revenues the lower the risk of the sample schools, and hence the lower the audit fees, which is different from that regarding the profit organizations.