Exploring the Trend and Current Scenario of Audit Fees in Bangladesh: Evidence from the Cement Industry

Abstract

This study demonstrates the trend and current scenario of audit fees in the listed companies of the cement industry in Bangladesh. The analysis uses 68 firm-year data from Bangladeshi listed cement companies, spanning the period from 2011 to 2020. The results indicate that the non-Big-4 affiliated firms dominate the cement industry's audit market. From 2013 to 2018, the audit fees incurred by businesses in this sector showed an increasing trend, and in the last two years, they have decreased. Furthermore, the audit fees incurred by Bangladeshi cement companies are far less than those suggested by the ICAB’s minimum audit fee schedule. This shows the trend for increased demand for lower audit fees in this industry, which ultimately leads to lower quality audits.