Chapter 5 Conclusion

5.1 Findings

The study examine the audit fee determinants in Pakistan of non-financial sectors.

Seventy non-financial listed firms have been examined from 2011 to 2015 and the

finding of the study is that the audit fee is significant and positive relationship with Firm

Size, Board Independence, CEO duality and big four whilst the audit remuneration has

negative relationship with firm leverage, board size and Audit committee independence.

5.2 Significance of the study

Previously audit fee disclosure was not mandatory for the firm, since now all firms are

required to disclose the audit fee, as a result a very scant work has been done is this

regard, therefore, the study explore determinates and opens up gate for improvement. In

addition, important factor is that external audit is compulsory for the company so this

study provide help in selection of appropriate audit firm. Furthermore this study provide

help for both audit firm and auditee albeit a very small work is done in audit

remuneration and the study is kind of a great contribution in this area. Furthermore, the

study concerns only with non-financial sector, whereas the same research can be done on

financial sector.

5.3 Limitation of the study

The study focus on given variable mentioned in the study, however, there are many other

variable that could be under consideration like firm profitability, business complexity.

Moreover the study covers only non-financial sectors.