The Pricing of Audit Services in Nigeria Commercial Banks

Abstract

This  study investigates the determinants of audit fees in commercial banks in Nigeria.  Data were collected from a sample of banks mostly quoted on Nigerian Stock Exchange.  Consistent with previous studies, the result of our data analysis showed that bank size,  degree of bank complexity and transaction and saving accounts to total deposit ratio are positively related and statistically significant to audit fees charged by the auditors.  Even though , non performing loan  is positively related to audit fees , it is statistically insignificant.  While, the risk weighted capital adequacy ratio is negatively related and statistically insignificant to audit fees.

Keywords: Audit fees, commercial banks, firm size, subsidiaries, auditor.