The Effect of Related Party Transactions and Political Connections on Audit Fee

Abstract

The purpose of this study is to present empirical data on the impact of related party transactions and political connection on audit fees. Using the Stata program, multiple linear regression analysis is employed in conjunction with descriptive statistics to test hypotheses. All non-financial companies listed on the Indonesia Stock Exchange between 2019 and 2021 make up the research population. This research uses a sample size of 125 companies. The research results show that political connections and related party transactions have a positive effect on audit fees. Companies that have high risk can increase the auditor's efforts in conducting audits so that they can increase audit efforts which results in high audit costs.