DETERMINANTS OF AUDIT FEES IN THE BASIC MATERIAL SECTOR ON THE BRAZILIAN STOCK EXCHANGE: THE ROLE OF ASSET SIZE AND CORPORATE GOVERNANCE

Resumen

This study analyzes the determinants of audit fees in the basic materials sector on the Brazilian Stock Exchange (B3), focusing on the impact of company size and corporate governance practices. The research uses data from 288 observations of 24 companies listed on B3, covering the period from 2011 to 2022. Through a descriptive methodology and the application of quantile regression, the study explores how variables such as affiliation with Big Four audit firms, asset size (LTA), corporate governance (CG), and other factors such as the market-to-book ratio (MTB) influence the fees paid to auditors. The results reveal that asset size is the most relevant factor, exerting a significant positive impact on audit fees. Corporate governance also plays an important role, especially among smaller companies, where robust governance practices amplify audit costs. Additionally, affiliation with Big Four audit firms is identified as a factor justifying higher fees, reflecting the search for credibility and rigor in auditing. Based on the findings, it is concluded that asset size is the primary determinant of audit fees in the Basic Materials sector, as evidenced by its positive and statistically significant association. Additionally, corporate governance proved particularly relevant for smaller companies, suggesting that the pursuit of robust practices can increase audit costs. The Big Four audit firms affiliation further reinforces the trend of higher fees, reflecting the premium placed on the quality and technical rigor provided by these firms.