Raed Kanakriyah
Purpose - This study examines the factors that have an impact on external audit fees on manufacturing companies listed on Amman Stock Exchange (ASE). Also, it tries to builds a model to determined and measuring external audit fees. Design/methodology/approach - A multiple regressions model was developed for the factors which expect to have possible impact on audit fees ( such as: client size, profitability, client’s risk, client’s complexity, client’s industry type, status of audit firm, external audit report lag, audit rotation and audit committee independence). The data were collected from the annual reports and information available on ASE website covering the period from 2014 to 2018. Findings - The most important factors that have significant effect on audit fees are: Audit Report Lag, risk, client size, status of the audit firm, and corporate complexity. Also audit fees are negatively and significantly associated with industry type and profitability. Moreover, no relations were detected between audit committee independence and audit rotation with the audit fees. Originality/ value – To the best of the researchers’ knowledge, there are little studies that have been performed to examine the factors influencing external audit fees of manufacturing companies listed on Amman Stock Exchange (ASE) for 5 years period. In addition, this study is considered among the first studies to build a model which help companies to determine auditing fees.