The effect of Social Responsibility Disclosure on Audit Risk
Mohsen
Dahmarde Ghaleno
Instructor of Accounting, Faculty of Humanities, Saravan Institute of Higher Education, Saravan, Iran
author
Hassan
Yazdifar
Professor in Accounting, Bournemouth University, Bournemouth, Dorset, UK.
author
Hamid
Zarei
Msc. in Accounting, Faculty of Management and Economics, University of Sistan and Baluchistan
author
text
article
2021
per
According to the auditing standards, after the entity has disclosed financial and non-financial information about its operation, the auditor should evaluate that information. Social responsibility performance is one of these informatimaon that the independent auditor considers when assessing audit risk. Therefore, the main purpose of this academic paper is to investigate the possible relationship between social responsibility disclosure and audit risk in companies listed on the Tehran Stock Exchange. In this study, the content analysis method is used to measure social responsibility disclosure, and audit risk is calculated by the audit fee index. The research hypothesis was tested for 93 firms during the years 2012–2019 using the ordinary least squares method (OLS). Findings show that there is a significant and positive association between social responsibility disclosure and audit risk, which was confirmed by employing panel data methods with random effects and generalized least squares. As the disclosure of social responsibility increases the audit risk and, consequently, audit fee increases. This issue warns users of financial statements, including investors, not to focus only on the positive aspects of social responsibility disclosure in Iran, as social responsibility disclosure can be used as a mechanism to cover up poor performance.
Professional Auditing Research
Publications of Iranian Association of Certified Public Accountants (IACPA)
2820-9931
1
v.
1
no.
2021
10
33
https://article.iacpa.ir/article_243327_830964f6a6ba1de89860f29c6eeae2b3.pdf
dx.doi.org/10.22034/arj.2021.243327
The impact of information complexity on audit failures from corporate fraud
alireza
hemmati
Msc.in Accounting, Faculty of Accounting and Management, Khatam University, Tehran, Iran
author
rezvan
hejazi
Professor in Accounting, Faculty of Accounting and Management, Khatam University, Tehran. Iran
author
Eldar
Sedaghatparast
PhD student, Organization and Management of Sabanci University. Istanbul, Turkey
author
text
article
2021
per
One of the important issues in auditing is the failure of auditing in corporate fraud, which according to previous research and the theory of agency representation with related parties and product diversity complicates independent financial audits, increasing the complexity of corporate information, information transparency Reduces and therefore increases the information asymmetry between managers and auditors and increases audit risk. In order to test these hypotheses in the companies listed on the Tehran Stock Exchange, two samples of 97 and 105 companies in the period 1390 to 1397 have been used. The results of estimating logit regression equations do not show any significant relationship between the complexity of information resulting from transactions with related parties, with audit failure. The results of estimating the logit regression equations of the second hypothesis show the existence of significant and positive relationships between the complexity of information resulting from product diversity, with audit failure. In other words, this research shows that when the company has a variety of products, auditors should pay attention to the presentation of professional audit work. Although these results are consistent with the findings of some similar studies in the literature، nevertheless, suggestions have been made for further studies to find variables affecting audit failure in Iran.
Professional Auditing Research
Publications of Iranian Association of Certified Public Accountants (IACPA)
2820-9931
1
v.
1
no.
2021
34
55
https://article.iacpa.ir/article_243332_b253f378a74661b42f196227d5795732.pdf
dx.doi.org/10.22034/arj.2021.243332
The Impact of the Audit Committee's Financial Expertise on the bnormal Tone of Management Discussion and Analysis Report (MD&A): Evidence from Management Interpretation Report
roohollah
arab
Assistant Professor, Faculty of Accounting, Golestan Institute of Higher Education, Gorgan, Iran
author
mohammad
gholamrezapoor
Msc.in Accounting, Golestan Institute of Higher Education, Gorgan, Iran
author
seyed pouria
kazemi
Msc.in Accounting, Faculty of Economics and Administrative, Mazandaran University, Babolsar.Iran
author
najes
amirnia
Msc.in Auditing, Bandargaz branch, Islamic Azad Univerdity, Bandargaz, Iran
author
text
article
2021
per
Since the tone of the managers influences the decision-making of the users of financial reports, the existence of independent and specialized committees in the company such as the audit committee can be effective as one of the pillars of corporate governance to monitor such actions of managers. Therefore, The main purpose of this study is to investigate the effect of the financial expertise of the audit committee on the abnormal tone of the management review and analysis report (management interpretive report) in companies listed on the Tehran Stock Exchange. To test the research hypothesis, the financial information of companies listed on the Tehran Stock Exchange in the period between 1396 to 1397 has been used, so that after applying the restrictions in this study, the final sample consisting of 168 companies was selected. After measuring the research variables, multivariate linear regression analysis was used to test the research hypothesis. The hypothesis was also tested using Eviews econometric software and statistical techniques of integrated data. The results of the statistical tests of the research show that the financial expertise of the audit committee leads to a reduction in the unusual tone of the management interpretative report.
Professional Auditing Research
Publications of Iranian Association of Certified Public Accountants (IACPA)
2820-9931
1
v.
1
no.
2021
56
71
https://article.iacpa.ir/article_243331_4210fd719444a1dd2455bb886e5df107.pdf
dx.doi.org/10.22034/arj.2021.243331
Comparison of Organizational and Audit Institutions' Views on Determining the Factors Affecting Audit Fees Using Fuzzy Logic
Mohammad Reza
Nikbakht
Associate Professor, Faculty of Management, Tehran Univerdity, Tehran, Iran
author
Musa
Bozorg Asl
Associate Professor, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran
author
Keyhan
Azadi
Assistant Professor, Department of Accounting, Rasht Brauch, Islamic Azad Univerdity, Rasht, Iran
author
Mohammad Javad
Tasaddi Kari
Ph.D. Student in Accounting, Rasht Branch, Islamic Azad Univerdity, Rasht, Iran
author
text
article
2021
per
The present research seeks to determine the mental priorities of the managers of the organization and the audit firms in determining the audit fees and compare these views with regard to the conditions (monopoly or competitive) of each of them in the pricing of audit services. Based on the analysis of the content of theoretical literature and audit experts, 17 factors were identified as effective in determining audit fees. The statistical sample consists of 15 managers of organization and 15 managers of audit firms. The required data were collected by means of a paired comparison questionnaire and the verbal indices were extracted from the questionnaire to determine the factors affecting the audit fees paid from the perspective of the audit firm’s managers and the managers of organization by the Expert Choice software. The basis of the fuzzy logic is made. After the phase-out phase, and the comparison of factors weights from both groups, 9 factors of 17 factors were identified as the most important factors influencing audit fees. Although there was no significant difference between the two groups in determining the most important factors affecting audit fees, but the priority of the weight of the nine factors was different from the viewpoint of the two groups in determining audit fees. The 9 factors which are effective in the determination of audit fees are: the volume of operations, the complexity of the operation, the quality and effectiveness of the internal controls of the entity under investigation, the geographical distribution of the audit operation, the size of the unit reviewed, the initial audit, the employer’s risk, the characteristics of the auditor and the duration of the auditor’s responsibility in an employer firm.
Professional Auditing Research
Publications of Iranian Association of Certified Public Accountants (IACPA)
2820-9931
1
v.
1
no.
2021
72
89
https://article.iacpa.ir/article_243328_5f8b781f49e1d9e830e06f00954fdb89.pdf
dx.doi.org/10.22034/arj.2021.243328
Explaining the Effective Factors on the Size of the Audit Institutions of the Iranian association of Certified Public Accountants
Alireza
Aghaie
Ph.D. student in Accounting, Damavand Branch, Islamic Azad University, Damavand, Iran
author
Shohreh
Yazdani
Assistant Professor, Department of Accounting, Damavand Branch, Islamic Azad University, Damavand, Iran.
author
Mohammad Hamed
Khanmohammadi
Assistant Professor, Department of Accounting, Damavand Branch, Islamic Azad University, Damavand, Iran
author
text
article
2021
per
The size of auditing firms is one of the most important and controversial issues in the auditing profession Which is mentioned as one of the factors affecting the audit. The most important variable in audit research deals with the quality of the audit. The present study seeks to assess the determinants of the size of the audit firms of the Iranian Association of Certified public Accountants. The time period of the present study is from 1391 to 1397. The statistical population of this study is data related to 229 member institutes of the Iranian Association of Certified Public Accountants, including the amount of income, number of certified public accountants in employment, number of partners of audit firms, quality control score by the Iranian Association of Certified Public Accountants and stock exchange and securities organization ranking. The results show that quality control score, number of certified public accountants in employment, stock exchange rank of institutions and the number of partners of institutions affect the size of institutions. Also, the results of Granger’s causality test show that the quality control score of the Society of Certified Public Accountants is the reason for the ranking of auditing firms by the Tehran Stock Exchange and Securities Organization.
Professional Auditing Research
Publications of Iranian Association of Certified Public Accountants (IACPA)
2820-9931
1
v.
1
no.
2021
90
113
https://article.iacpa.ir/article_243329_f508c6a827817a26a9301b5d4e548050.pdf
dx.doi.org/10.22034/arj.2021.243329
Audit Report Lag and Auditor-Client Geographic Proximity: Evidences from Information Advantage of Interaction & Improve Audit Efficiency
Mohammad
Hassani
Assistant Professor, Department of Management, North of Tehran Branch, Islamic Azad University, Tehran, Iran
author
Mahsa
Mohammadi
MSc. in Auditing, Department of Management, North of Tehran Branch,
Islamic Azad University, Tehran, Iran
author
text
article
2021
per
The purpose of this article is to investigate the relationship between auditor-client geographic proximity and audit report lag. Research data include 917 firm-year observations which consist of 131 sample firms listed on the Tehran Securities & Exchange over the period 2013 to 2019. Research hypotheses analyzed using multivariate regression models based on panel data with fixed effect and generalized least squares method. The results indicated that auditor- client geographic proximity caused to decrease the audit report lag. Because such auditors are able to interact more frequently with the client and obtain client-specific news, which increases their ability to monitor the client effectively; so it leads to decrease in the auditor report lag. According to the findings, some client characteristics, auditor characteristics, board and audit committee characteristics had an impact on audit report lag. Modified audit opinion, board financial expertise, bad news,financial distress position, reporting risk and complexity, external financing and product market competition had a direct impact on auditor report lag; auditor rotation, auditor quality rank, audit committee independence and firm size had an inverse impact on auditor report lag. But audit fee, board independence, institutional ownership, ownership concentration, audit committee financial expertise, financial leverage, capital expenditure and loss had no impact on auditor report lag.
Professional Auditing Research
Publications of Iranian Association of Certified Public Accountants (IACPA)
2820-9931
1
v.
1
no.
2021
114
137
https://article.iacpa.ir/article_243326_e30b46a569f30569494f1b8ca34f0e8e.pdf
dx.doi.org/10.22034/arj.2021.243326
The relationship between auditing report readability and users’ decision making quality
narges
norozi
Msc.in Accounting, Qazvin branch, Islamic Azad University, Qazvin, Iran
author
Farzin
Rezaei
Associate Professor, Department of Accounting, Qazvin branch, Islamic Azad University,
Qazvin, Iran.
author
text
article
2021
per
The auditing report as the outcome of auditing and, in fact, the report that shows the result of the review of the financial statements, should be understandable in to users and be a source of information. In other words, the auditing report should be able to influence the users’ decision. Au diting report readability means that it is understandable for users. Improving the auditing report readability is expected to improve the users’ decision mak ing quality. In other words, it is expected that the more readable the audit report, the greater the investment by investors and the easier it will be to recieve facilities from creditors, and reducing the conflict of interests between managers and owners. The purpose of this study is to investigate the effect of auditing report readability on the users’ decision making quality. In this paper, three of the most important users, including investors, creditors and managers, have been con sidered. To investigate this issue, data from 61 firms listed on the Tehran Stock Exchange during the years 1392 to 1398 have been used. In general, the results indicate that there is a positive relationship between auditing report readability and investors’ decision making quality.
Professional Auditing Research
Publications of Iranian Association of Certified Public Accountants (IACPA)
2820-9931
1
v.
1
no.
2021
138
156
https://article.iacpa.ir/article_243330_d3ce08e00fb563cf2ee67b63fd70eff3.pdf
dx.doi.org/10.22034/arj.2021.243330