Sarlina Sari

Abstract :  The purpose of this research is to examine the effect of complex accounting estimates on audit fees and the role of audit committee’s effectiveness as moderating variable. This research used sample of Indonesia Stock Exchange non-financial companies for the Last Five Years (2011-2015). The complex accounting estimates used in this research were non-financial assets revaluation, goodwill and goodwill-impairment. Regression results showed that revaluation of non-financial assets, goodwill and goodwill-impairment had no effect on audit fees. However, in companies with an effective audit committee, the audit fee was higher if the company took revaluation of non-financial assets. The results of this research could be considered by regulators to set auditing standards related to audit of fair value that required complex accounting estimates, so that auditors were more aware about the reliability of fair values that were difficult to be observed.

Keywords:  Revaluation of non-financial assets; goodwill, goodwill-impairment; audit fees; the audit committee’s effectiveness

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