Thesis (M.S.) - Cyprus International University. Institute for Graduate Studies and Research Accounting and Finance Department

This thesis examines the relationship between the audit fee and four audit attributes, (i) client's size (ii) client's risk (iii) client's profitability (iv) audit firm size in Amman Stock Exchange, also this thesis will identify which of the attributes is causing a premium audit fees in a positive direction, in three different sectors (i) service sector (ii) financial sector and (iii) manufacturing sector. According to previous researches the variety of the fee that has been charged in exchange of audit services are caused from the wide variations in the audit attributes values, some audit attributes can affect the audit quality positively, and the audit firms who provide more quality service charge a fee premium for their audit services. this thesis tests the connection between the audits attributes and the audit fee on 45 firms in the Jordanian financial market, 15 firms from each sector, for the period 2008 to 2019. The results indicate that in the overall market the audit fee can be affected positively by the client's profitability and audit firm size, in the service sector the audit fee doesn't have any positive relationship with the tested audit attributes, in the financial sector the audit fee has a positive relationship with the audit firm size and client's risk. Finally, in the manufacturing sector, the audit fee has a positive relationship with the audit firm size and client's size