| Abstract: | The purpose of this study is to evaluate the effects of the adoption of International Financial
Reporting Standards (IFRS) on audit fees in a sample of Ethiopian insurance companies. Both
quantitative and qualitative methods were used in the study, and the study employed an
explanatory research design, as well as a panel-data research approach. A non-probabilistic,
purposive sampling technique was employed to gather the data for this investigation, where 9
(nine) of the 18 (eighteen) insurers were included. Both primary and secondary data were used in
this study, where financial data was collected and interviews were conducted with selected
representatives of the organizations. Descriptive statistics (frequency, mean, and standard
deviations) were employed. And Pearson's correlation and multiple linear regressions were also
utilized. The findings showed that, in the two models employed in this study, company size and
the IFRS dummy variable are the two variables that have a statistically significant result and effect
on Audit fees. Meanwhile, several independent variables a negative association with the dependent
variable. In conclusion, IFRS implementation has coincided with the increase in Audit fees. Hence,
it was recommended that when setting out the price for the audit work, both the insurance
companies and auditors should consider factors such effects of IFRS and the company size, which
were seen to have a positive and significant relationship with Audit fees. Moreover, future
researches should take into account the succeeding years since the study period used in this study,
to demonstrate whether the impact will continue or diminish. |
