JANUARTI, Indira (2019) Efectivenenss of Supervision and Company Risk on Audit Fees (Companies Listed on Indonesia and Malaysia Stock Exchanges). The 4th International Research Conference on Management and Business.

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Abstract

Financial statements of listed companies are mandatory to be audited by an external auditor.
Function of audit is to check the financial statements are presented in accordance with financial
accounting standards. It is part of supervision and will reduce risks of stakeholders in term of
misappropriate of financial statements. Strict supervision of concentrated ownership and
multinational affiliation demands a high audit quality. In effect, audit fees are increase because of
the choice of reputable auditor. High company risk as a factor of increasing audit fees. The purpose
of this study is to examine and provide empirical evidence of the effect of ownership structure,
multinational ownership affiliates, and number of subsidiaries on audit fees. The sample of 340
companies listed on the Indonesia and Malaysia Stock Exchanges in 2017. The analysis tool uses
multiple linear regression. The result shows that the number of subsidiaries and multinational
ownership affiliates has a significant positive effect on audit fees, while the ownership structure
hasn’t positive effect on audit fees. The implications of this study show that the determination of
audit fees can be based on audit risk and quality.

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