Investigating Effective Factors on Audit Fees with an Emphasis on Stickiness of Audit Costs

Abstract

Agency problems between managers and shareholders as a result of a conflict of interest is created. In the meantime, the audit an effective strategy to limit a director's authority is in contractual relations. The aim of this study is Investigating effective factors on audit fees with an emphasis on Stickiness of audit costs in companies listed on the Tehran Stock Exchange. For this purpose, the data relating to companies listed on Tehran Stock Exchange for the period 2012 to 2016 were extracted. Test hypotheses using panel data regression model was conducted. The results show that the size of the company and the current ratio is an important factor affecting on audit fees. Also, the audit fees quickly and proportional to the levels provided by the model of audit fees, not modified, And audit fees when a reduction is expected to lower than expected increase when a decrease, and finally fees deviations from the standard model of audit fees reduced for longer periods of time.

Keywords: Stickiness of audit costs , audit fees right, the behavior of prices