Audit Fee, Human Resources, and Audit Quality of Financial Statements

Abstract

This study aims to provide empirical evidence about the impact of audit fees on the audited quality of financial statements. Human resources become a moderating variable to provide understanding of the importance of adequate human resources in completing audit tasks. The contribution to be made in this study is to initiate the issuance of new rules that limit the number of clients in each public accounting firms and auditor. The research data used are all public accounting firms in Indonesia, the period 2016-2018 obtained from the Ministry of Finance of the Republic of Indonesia. The final data used in the study were 979 public accounting firms in the 2016-2018 period. The findings of this study indicate that the higher audit fees received by public accounting firms and auditors tend to reduce the audit quality of financial statements.