Factors Affecting External Auditors' Fees in the Hashemite Kingdom of Jordan

Abstract

This study aims at identifying the major factors which affect auditors' fees in the Hashemite Kingdom of Jordan. It is an empirical investigation which uses a descriptive, quantitative methodology in which the researcher designed and distributed a questionnaire to collect the data from a random sample which consisted of 80 of the 185 offices offering auditing and financial services. The findings reveal that characteristics of the auditing office, such as size, reputation, and affiliation with an international auditing firm, have significant effect on determining auditors' fees. The findings also reveal that characteristics of the audited firm and those of the business environment surrounding that firm have a relatively weaker effect on auditor's fees.