Determinants of Audit Fees in Nigerian Consumer Goods Sector

Abstract

The purpose of this study is to assess the determinants of audit fees among consumer goods companies publicly listed on the floor of the Nigerian Exchange Group (NGX). Secondary data of firm size, age and profitability (independent variables), and audit fee (dependent variable) from the chosen consumer goods firms in Nigeria's annual reports and accounts from 2012-2022. “Descriptive statistics (mean, median, standard deviation, skewness, kurtosis, and Karl Pearson correlation); diagnostic statistics (variance inflation factor, Breusch Pagan-Cook test for heteroskedasticity, Ramsey RESET test); and inferential statistics (Chi square test, Fisher's exact test, and t-test) were used to analyse the data;” and principal component analysis) and inferential statistics (ordinary least square). Generally, the results showed that firm size and profitability are the measure determinants of audit fees while firm age do not determines audit fees. It is therefore it was recommended that consumer goods companies need to enhance the size and profitability (return on assets).