Related-party transactions: evidence of audit fees in publicly companies in the brazilian market




Audit Fees, Related-party transactions, Audit


Purpose: The study aimed to identify the influence of related-party transactions (RPTs) on audit fees (AudFee) of publicly traded companies in the Brazilian market.

Method: AudFee measurement was performed using the natural logarithm, in agreement with the research by Habib et al. (2015) and Al-Dhamari et al. (2018). Regarding related-party transactions, we also chose to use RPTs in their logarithm form (Habib et al., 2015; Pratama, 2018; Ali et al., 2021). The collection of economic and financial data was carried out at Economática database and information on auditing was taken from the Reference Form, finally, data referring to TPRs were collected from the individual statements of the companies in the sample.

Results or Discussion: The results suggest that RPTs for sales, purchases and totals contribute to increased audit risk, possibly being more complex to verify. And, therefore, they are associated with higher amounts of audit fees charged when providing external audit services.

Contributions: The research has implications for investors, analysts and auditors, indicating that TPRs need to be analyzed with greater precision. Finally, the findings also provide a warning to standard-setters regarding the protection of minority shareholders, as related party transactions can be used to obscure accounting information.


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How to Cite

Santo Lima, A. C., Silva do Carmo, C. H. ., & Alves Gonçalves Magalhães , K. (2023). Related-party transactions: evidence of audit fees in publicly companies in the brazilian market. Advances in Scientific and Applied Accounting, 16(2), 012–026/027.