Abstract
This study aims to examine and analyze the effect of the existence of an internal audit function (IAF) and internal audit disclosure (DIA) on external audit fees in non-financial companies listed on the Indonesia Stock Exchange in 2015-2019. The approach used in this study is a quantitative study consisting of 327 samples with purposive sampling technique. Data analysis in this study using multiple linear regression. The results showed that the existence of the internal audit function (IAF) had a negative and insignificant effect on the audit fee service, while the disclosure of the Internal Audit (DIA) had a significant positive effect on the fee service audit. Control variables, namely company size, return on assets, public accounting firms and subsidiaries are used to avoid it bias element.
Highlights
Based on the phenomenon of giving audit fees that continues to increase annually in a company and the widespread need for professional services of public accountants as independent parties, the public accounting profession is required to improve its performance so that the resulting audit products can be relied on by those in need
Abstract; This study aims to examine and analyze the effect of the existence of an internal audit function (IAF) and internal audit disclosure (DIA) on external audit fees in non-financial companies listed on the Indonesia Stock Exchange in 2015-2019
Regarding factors that have an impact on the scale of fees received by auditors, control variables are used, namely company size, return on assets, public accounting firms, and subsidiaries which refer to Rizqiasih's research (2010)
Summary
Based on the phenomenon of giving audit fees that continues to increase annually in a company and the widespread need for professional services of public accountants as independent parties, the public accounting profession is required to improve its performance so that the resulting audit products can be relied on by those in need. There is an obligation to disclose the audit fee in the Financial Services Authority Circular Letter No.30 / SEOJK.04 / 2016. Regarding the fee service audit, in 2016, there were allegations of providing fictitious financial reports to PT Timah (Persero) Tbk in the first semester of 2015 (Nurdiana, 2020). Non-financial companies in Indonesia have the largest emissions, namely 570 compared to other types of companies listed on the IDX, Humairo, Aisyah et al, (2018) from 2013 to 2017 the results of the analysis on the audit fee trend chart of Real Estate and Property Companies tend to be followed a straight line (increased) except in 2015 so that the object used by researchers was non-financial companies on the IDX that were recorded in the 2015 to 2019 period
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