The Relationship Between Internal Auditing and External Audit Fees: Evidence from Kuwait
Abstract
Although audit pricing has been one of the most studied topics in the
audit literature for more than three decades now, to date, very little research has
been conducted on this important issue in the Middle East Region. One important
question in this line of audit research has been related to whether audit fees are
influenced by the contribution of client’s internal auditing (IA) to the external
audit work. Much of existing research investigating this issue has been conducted
in well-developed English-speaking countries, with almost no empirical evidence
provided about this issue within the context of other parts of the world. The
purpose of the current study is to examine this issue using data from the Kuwaiti
audit market. In particular, the current study uses a sample of audit engagements
performed in the Kuwaiti market, to examine whether external audit fees are
influenced by the contribution of the client’s internal audit function. The results
show that IA contribution in the external audit work is negatively related to the
amount of external audit fees.
DOI/handle
http://hdl.handle.net/10576/11145Collections
- 2017 - Volume 20 - Issue 1 [3 items ]
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