DETERMINANTS OF AUDIT FEES IN THE BANKING INDUSTRY
Abstract: This research examines determinants of audit fees in the banking sector.The main objective is to find out if there is any relationship between audit firm size and audit fee and also to verify if profitability has significant impact on audit fee. Using Ordinary Least Square (OLS) regression technique with the aid of a computer software, the empirical findings revealed among other things that, there is no significant relationship between audit firm size, firm profitability, firm tangibility, net income and audit fee. It furthermore reveals that there is a significant relationship between firm size, firm turnover and audit fee. The study concludes that the nature of audit fee has attracted attention in recent times because of its effect on auditor independence and by implication the audit quality. The study recommends that corporate organizations in Nigeria should pay proper attention to their firm size and firm turnover as they are the major determinants of audit fee in the Nigeria banking sector as observed in this study.