Political Connection, CEO Gender, Internal Audit, Corporate Complexity and Audit Fee in Go Public Companies in Indonesia

Alexandros Ngala Solo Wea

doi:10.7176/rjfa/10-12-02

Abstract

This study aims to determine the Political Connection, Gender CEO, Internal Audit and Corporate Complexity affect the size of the Audit Fee paid to the Public Accountant by the company. This study uses secondary data in the form of the company's annual report going public in 2015-2017 and using a purposive sampling technique with a total of 247 company data companies. Analysis Techniques Data used in this study are Multiple Linear Regression with Classical Assumption Test. The results of this study indicate that Political Connections (0.003), Internal Audit (0.032) and Corporate Complexity (0.005) have a significant effect on Audit Fee while for Gender CEO variables (0.603) does not affect Audit Fees. Keywords: Audit Fee, Political Connection, CEO Gender, Internal Audit, Corporate Complexity, Company Risk (DEBT), KAP Type DOI : 10.7176/RJFA/10-12-02 Publication date :June 30 th 2019

Highlights

The company's financial statement is a description of the condition and performance of the company as it provides information regarding the company's cash flow, management performance and the company's financial position
There are guidelines for payment of audit fees issued by the Indonesian Institute of Certified Public Accountants (IAPI), but in reality, the amount of audit fees paid by companies varies
5 CONCLUSION Based on the results of hypothesis testing in multiple linear regression analysis, it was found that the CEO Gender variable did not affect the Audit Fee paid by the company to the auditor, while the Political Connection, Internal Audit and Business Complexity variable affected the Audit Fee paid by the company to the Auditor

Summary

Introduction

The company's financial statement is a description of the condition and performance of the company as it provides information regarding the company's cash flow, management performance and the company's financial position. To improve the quality and reliability of the Financial Report, an audit is carried out by a public accountant to provide a sense of confidence for users of financial statements so that it can be used as a basis for consideration in decision making. Use of Public Accountants in auditing financial statements will increase agency costs, one of which is audit fees. Audit Fee itself is a reward given by the company to the public accountant (independent auditor) for the audit services provided. The amount of the audit fee given to the auditor depends on the risk of the assignment, the complexity of the services provided, the level of expertise needed, the cost structure of the relevant Public Accounting Firm (KAP) and other professional considerations (Mulyadi, 2002)

Objectives

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Conclusion