|
Document Type |
: |
Article In Journal |
|
Document Title |
: |
The Reduction of Audit Fee Level and Its Impacts on the Quality of Professional Performance: An Empirical Study on Audit Firms in the Kingdom of Saudi Arabia انخفاض مستوى أتعاب المراجعة وآثاره على جودة الأداء المهني : دراسة ميدانية على مكاتب المراجعة في المملكة العربية السعودية |
|
Subject |
: |
Business Administration |
|
Document Language |
: |
Arabic |
|
Abstract |
: |
This study aims at exploring the impact of low level audit fees on the quality of professional performance, as well as its impacts on firms continuation, increase of competition in the audit market and professional breaches. To achieve that, a questionnaire has been designed based on certain elements for each of the three hypotheses of the study. These elements were derived from previous studies together with a consideration of the nature and development of the auditing profession in the Kingdom of Saudi Arabia. The researchers have related most of the analysis of the empirical data to the size of audit firms under research, ranging from small, medium and large firms.
The results of the empirical study were contradictory to a large extent. These results revealed that although no major effects were caused by the reduction of audit fees on the quality of professional performance, such a reduction has generated other matters including, reducing the willingness of being a professional within the audit industry, minimizing the chances of attracting new qualified professionals and increasing the severity of competition and professional misconduct and violations. The study also revealed that there were more effects on smaller firms compared with larger firms. These small firms were seen to be more ready to accept the damages caused by the reduction of audit fees, and thus being unable to maintain an accepted level of professional performance and avoid violation. The study concludes by providing a number of recommendations, including the necessity of actuating the expecting role of the quality review program in order to ensure improvement in the quality of the performance of audit firms, the necessity of imposing a minimum limit on audit fees along with a controlling and regulatory roles played by the Saudi Organization for Certified Public Accountants, the necessity of increasing public awareness of the role and function of the auditing profession within society, the necessity of encouraging accuracy in selecting and comparing auditors as well as concentrating on quality and qualification rather than on the low fee factor, and encourage small firms to merge in suitable groups where they can consolidate their capabilities, qualifications and experiences in order to strengthen their position in the market, develop their professional methods and expand the scope of their professional services.
|
|
ISSN |
: |
1319-0997 |
|
Journal Name |
: |
Economics and Administration Journal |
|
Volume |
: |
20 |
|
Issue Number |
: |
1 |
|
Publishing Year |
: |
1427 AH
2006 AD |
|
Article Type |
: |
Article |
|
Added Date |
: |
Sunday, October 11, 2009 |
|
Researchers
| إيمان حسين الشاطري | Eman H. Al-Shatri | Researcher | | |
| حسام عبدالمحسن العنقري | Hussam A. Al-Angari | Researcher | | |
|