AN EXAMINATION OF KEY DETERMINANTS IMPACTING EXTERNAL AUDIT FEES IN FIRMS LISTED ON THE PALESTINE EXCHANGE

Abstract

This study investigates the factors influencing external audit fees for firms listed on the Palestine Exchange. Using a descriptive-inductive methodology, this study combines content analysis with quantitative panel data analysis, examining data obtained from the annual financial reports of 23 Palestinian firms from 2014 to 2019. The results show a positive and significant relationship between firm size and audit fees, while firm profitability, risk, and the audit firm’s status do not significantly affect audit fees. Additional factors influencing audit fees include audit report timeliness, firm complexity, and political instability. While the findings may not be generalizable beyond the unique context of Palestine, they provide valuable insights for stakeholders in the Palestinian audit market, such as regulators and investors, and emphasize the need for further research into the determinants of audit fees. This study contributes to the limited literature on audit fees in emerging economies like Palestine and offers useful insights for similar markets globally.