The Determinants of Audit Fees: The Context of Cameroon

Samuel Tanjeh Mukah¹, Michael Forzeh Fossung^2, , Kueda Wamba Berthelo³ and Samka Marion Nyuykighan³

¹Department of Accounting and Finance, Higher Institute of Commerce and Management, The University of Bamenda, Cameroon

²Department of Accounting, Faculty of Social and Management Sciences, University of Buea, Cameroon

³Department of Accounting, Faculty of Economics and Management Sciences, The University of Bamenda, Cameroon

Cite this paper:
Samuel Tanjeh Mukah, Michael Forzeh Fossung, Kueda Wamba Berthelo and Samka Marion Nyuykighan. The Determinants of Audit Fees: The Context of Cameroon. Journal of Finance and Accounting. 2022; 10(1):7-14. doi: 10.12691/jfa-10-1-2

Abstract

This study is crystallised on examining the determinants of the amount of audit fees paid in the context of Cameroon using a causal research design. Data was collected through a structured questionnaire administered to companies subject to statutory audit in Cameroon's three regions: Littoral, North-West, and Centre. The model is tested by running a multilinear regression of the audit fees on the auditor characteristics, the auditee characteristics and auditor/Auditee relationship characteristics by using a sample of 171 companies. The size of the auditee, the auditor's expertise, the corporate complexity, the duration of the mandate, the reporting time lag, and the auditor's experience were found to be the most critical drivers of audit fees. While the analysis shows that industry is not a key factor of audit fees, it also indicates that audit fees are not affected by auditor rotation. The current study strongly reinforces that most prior studies are also appropriate to the Cameroonian audit market. This research is unique since it's the first to empirically determine factors affecting the level of audit fee paid by auditee in the context of Cameroon.

Keywords:
audit fees auditor auditee Cameroon

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