ANALYSIS OF FACTORS THAT INFLUENCE REMUNERATION OF AUDITORS IN THE BASIC INFRASTRUCTURE SECTOR AT B3

Abstract

The present article is based on a study about the factors that influence the costs associated with Auditors’ Fees in the Brazilian basic infrastructure sector listed on “B3” (Brazilian Stock Exchange). The main objective is to analyze the variables that affect the fees paid to the auditors, such as company size, affiliation with the Big Four, corporate governance aspects and temporal characteristics. The methodology adopted is descriptive, based on panel data analysis. Data were collected on the Securities and Exchange Commission (CVM) website and the “Comdinheiro” database, covering the period from 2011 to 2022 and 31 companies from the sector. The econometric model applied is the fixed-effect model, exploring a wide range of variables potentially related to Audit Fees. Results indicate that hiring one of the Big Four accounting firms, total asset size, corporate governance and the interval between the end of the fiscal year and the disclosure of financial results by the company are significant in determining audit fees. However, contrary to a recurring assumption, the analysis of the variable REPLAG, which establishes a relationship between the necessary interval for the disclosure of financial results and audit fees, turned out to be an inverse relationship, this is because an inverse relationship between the longer period between the end of the fiscal year and the disclosure of results did not result in higher audit costs. For conclusion purposes, this study highlights the importance of audit firms’ reputations, the complexity of business operations and the efficiency of internal processes in determining audit fees. In addition, this investigation opens avenues for future research, encouraging a more in-depth examination about how an auditors’ remuneration interacts with the quality and efficiency of an audit, as well as the effect of various remuneration models on auditors independence.