INVESTIGATING COMPANY INCOME AND GENDER DIVERSITY ON AUDIT FEES IN CO-OPERATIVES

Abstract

Auditing is an effective solution to limit the managers' powers in contractual relations. Audit fees reflect the quality of audits for external users of financial statements. The fee amount is responsible for the number of audit efforts or estimate of the total audit risk of the client unit. This study aims to analyze the factors affecting the audit fee in co-operative companies from 2009 to 2019 by using the information of 70 selected companies. This study results showed that the auditor's amount of sales (company revenue) gender diversity increases the audit fee. In other words, if the auditor receives more fees, he makes more effort and has a better quality of work. In addition, auditing firms that benefit from female managers and auditors have higher auditing fees because women are more risk-averse, more conservative,  more accurate, and more sensitive to complex issues.