Auditor’s Education Background and Audit Fees Based on Audit Risk Level

DOI: https://doi.org/10.62517/jel.202414601

Author(s)

Jinfeng Zhang*

Affiliation(s)

School of Accounting, Guangzhou College of Commerce, Guangzhou, China *Corresponding Author

Abstract

To get a good audit report or make the auditing environment more fairly and orderly, we should focus on the auditors’ subjective factors like the personal characteristics such as gender, experience, position, educational background, major and so on. The goal of this study is to explore the relationship between auditors’ education background and audit fees based on audit risk level. Based on the attribution theory, the two hypotheses development are put forward between audit fees and auditors’ educational background based on audit risk level in this study. Collecting secondary data and analyzing it completely, all the data processing and calculation process of the empirical study were completed by excel and stata15. The results are that auditors with greater education tend to charge higher auditing fees. Moreover, highly educated auditors charge substantially higher audit fees when the audit risk is higher, indicating that audit risk level moderates the positive effect between auditors’ educational background and audit fees. According to the research, investors and regulators might be able to obtain more information if they can identify certain auditors. This study can provide a positive basis for the training of auditors’ talents and the construction of industry team.

Keywords

Educational Background; Audit Fees; Audit Risk Level; Personal Characteristics

References

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