Impact of Abnormal Audit Fees on Audit Opinion and Quality in ASEAN Countries

Positive abnormal audit fee decreases audit quality. A high abnormal audit fee reduces audit quality because it interferes with the auditor's independence and objectivity. In addition, high audit fee allows a creation of economic bonding between auditors and clients. Likewise, a negative abnormal audit fee also decreases audit quality. This is because the auditor adjusts his/her audit effort and procedures according to the fee paid by his/her client. This study examines the effect of an abnormal audit fees on audit opinion and audit quality in five ASEAN countries which are Indonesia, Malaysia, Philippines, Singapore, and Thailand. The sample comprises companies listed on the stock exchanges in the five countries between 2010 and 2014. The regression result shows that a positive abnormal audit fee does not have a significant effect on the probability of a company to get an unqualified audit opinion. These results indicate that there is no opinion shopping.