Professional Auditing Research

Professional Auditing Research

Comparison of Organizational and Audit Institutions' Views on Determining the Factors Affecting Audit Fees Using Fuzzy Logic

Document Type : Original Article

Authors
Mohammad Reza Nikbakht 1
Musa Bozorg Asl 2
Keyhan Azadi 3
Mohammad Javad Tasaddi Kari 4
1 Associate Professor, Faculty of Management, Tehran Univerdity, Tehran, Iran
2 Associate Professor, Faculty of Management and Accounting, Allameh Tabataba’i University, Tehran, Iran
3 Assistant Professor, Department of Accounting, Rasht Brauch, Islamic Azad Univerdity, Rasht, Iran
4 Ph.D. Student in Accounting, Rasht Branch, Islamic Azad Univerdity, Rasht, Iran
10.22034/arj.2021.243328
Abstract
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.
Keywords
Audit Fees
Audit Organization
Audit Institutions
Fuzzy Logic
بادآور نهندی، یونس؛ درخشی، رضا؛ شیرمحمّدلو، رضا. (1393). بررسی تأثیر اندازه حسابرس و تخصص حسابرس در صنعت بر حق‌الزحمه حسابرسی، دومین همایش ملی رویکردی بر حسابداری، مدیریت و اقتصاد.
بنی مهد، بهمن؛ مرادزاده فرد، مهدی؛ زینالی، مهدی.(1391). «اثر حق‌الزحمه حسابرسی بر اظهارنظر حسابرس، حسابداری مدیریت، شماره 15: 41-54.
حبیبی، آرش؛ ایزدیار، صدیقه؛ سرافرازی، اعظم.(1393). تصمیم‌گیری چند معیاره فازی، انتشارات گیل کتیبه.
حسّاس یگانه، یحیی؛ علوی طبری، سیّد حسین.(1382). رابطه بین منابع صرف شده برای حسابرسی داخلی و مخارج حسابرسی مستقل، مطالعات حسابداری، شماره 4: 72-96.
خدادادی، ولی.(1395). بررسی تأثیر سیاست سود بر رابطه بین کیفیت سود و حق‌الزحمه حسابرسی، دانش حسابداری مالی، دوره سوم، شماره1(8): 111-133.
داروغه حضرتی، فاطمه؛ پهلوان، زهرا.(1391). رابطه بین کیفیت گزارش حسابرسی و حق‌الزحمه حسابرسی در شرکت‌های پذیرفته شده در بورس اوراق بهادار، حسابداری مدیریت، شماره 14: 24-13.
رضازاده، جواد.(1397). نظریه‌های حسابرسی، انتشارات ترمه، چاپ سوم.
سلطانیان، حمید، بررسی رابطه بین حق‌الزحمه غیرعادی حسابرسی و کیفیت حسابرسی، پایان‌نامه‌ی کارشناسی ارشد، دانشگاه امام رضا(ع).
فرجی امیری، کیوان.(1393). تأثیر رقابت حق‏الزحمه‌ی حسابرسی مستقل بر کیفیت حسابرسی و گزارش‌گری مالی در بخش‏های عمومی و خصوصی، پایان نامه‌ی کارشناسی ارشد، دانشگاه پیام نور تهران.
مهرانی، ساسان؛ جمشیدی اوانکی، کورش.(1389). بررسی عوامل مؤثر بر تعیین حق‌الزحمه‌ی حسابرسی، پایان نامه‌ی کارشناسی ارشد، دانشگاه تهران، دانشکده مدیریت، گروه حسابداری.
نیکبخت، محمّدرضا؛ تنانی، محسن.(1389). آزمون عوامل مؤثر بر حق‌الزحمه حسابرسی صورت‌های مالی. پژوهش‌های حسابداری مالی، شماره 2(4): 132-111.
نیکبخت، محمّدرضا؛ بزرگ اصل، موسی؛ آزادی، کیهان.(1395). ارائه مدلی جامع برای قیمت‌گذاری خدمات حسابرسی با استفاده از منطق فازی. دانش حسابداری مالی، شماره 3 (10): 116-97.
واعظ، سیّدعلی؛ احمدی، محمّدرمضان؛ رشیدی باغی، محسن.(1393). تأثیر کیفیت حسابرسی بر حق‌الزحمه‌ی حسابرسی شرکت‌ها، دانش حسابداری مالی، شماره 1: 107-87.
والاس، وندا. ای، ترجمه امیر اصلانی.(1394). نقش اقتصادی حسابرسی در بازارهای آزاد و بازارهای تحت نظارت، سازمان حسابرسی، نشریه 151، چاپ هشتم.
 
Banimahd, B., Moradzadeh Fard, M. & Zeinali, M. (2012). The effect of auditor’s fee on the auditor comments. Management Accounting Quarterly, 15, 41-54. (In Persian)
Collier, P. and Gregory, A. (1999). “Audit Committee Activity and Agency Costs”. European Accounting Review, No:5(2), PP:177-198.
Committee on Basic Auditing Concepts, A Statement of Basic Auditing Concepts (Sarasota, Fla.: American Accounting Association, 1973).
Darogheh Hazrati, F. & Pahlavan, Z. (2012). The Relationship between the Quality of Audit Reports and Audit Fees in Companies Listed on the Stock Exchange. Management Accounting Quarterly, 14, 13-14. (In Persian)
Faraji Amiri, K. (2014). The Impact of Financial Reporting Fee Competition in Public and Private Sectors. Master Thesis, Payame Noor University of Tehran - Center. (In Persian)
 Habibi, A., Izadiar, S. & Sarafrazi, A. (2014). Fuzzy multi-criteria decision making. Gil Katibeh Publications. (In Persian)
 Hasas Yeganeh, Y. & Alavi Tabari, H. (2003). Relationship between resources spent for internal audit and independent audit expenses. Quarterly Journal of Accounting Studies, 4, 72-96. (In Persian)
Jensen, M; and Meckling, W. (1976). “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure”. Journal of Financial Economics 3(4), PP:305-360.
Karim, W. A. (2010). “Audit Pricing, Audit Concentration and Big4 Premium in Bangladesh”, Working Paper, Saint Marys College of California, Available on: www.ssrn.com.
 Khodadadi, V. (2016). Investigating the effect of earnings policy on the relationship between earnings quality and auditing fees. Journal of Financial Accounting, Volume 3, 1 (8), 111-133. (In Persian)
Kikhia، H. Y. (2015). “Determinants of Audit Fees: Evidence from Jordan”. Accounting and Finance Research, Vol. 4, No. 1. www.sciedu.ca/afr.
Mehrani, S. & Jamshidi Avanki, K. (2010). Study of Factors Affecting the Determination of Audit Fees. Master Thesis, University of Tehran, Faculty of Management, Department of Accounting. (In Persian)
Nikbakht, M. R. & Tanani, M. (2010). Testing the Factors Affecting the Audit Fee of Financial Statements. Financial Accounting Research, 2 (4), 111-132. (In Persian)
Nikbakht, M. R., Bozorgasl, M. & Azadi, K. (2016). Providing a comprehensive model for pricing audit services using fuzzy logic. Scientific-Research Journal of Financial Accounting Knowledge, 3 (10), 97-116. (In Persian)
Nikkinen, J. and Petri, S. (2005). “Rislcin audit pricing the role of firm specific dimensions of risk”, Advances in international Accounting. Vol:19, PP:141-151.
O’Sullivan, N. (1999). “Board Characteristics and Audit Pricing Post- Cadbury: A Research Note. European Accounting Review, No8(2), PP:253-263.
Omwoyo, W, N. (2012). “The relationship between Corporate Governance and audit fees”. Master Thesis in Strathmore University.
Rezazadeh, J. (2018). Audit theories. Termeh Publications, third edition. (In Persian)
Simunic, D. (1980). “The Pricing of Audit Services: Theory and evidence”. Journal of Accounting Research, Vol: 18(1), PP: 161-190.
Soltanian, H. Investigating the Relationship between Unusual Audit Fees and Audit Quality. Master Thesis, Imam Reza University. (In Persian)
Sullivan, M. W. (2000). “The Effect of the Big Eight Accounting Firm Mergers on the Market for Audit Services. US Department of Justice- Economic Analysis Group”. Working Paper No. EAG 00-02.
Thu, V. (2012). “Determinations of Audit Fees for Swedish listed non- financial firms in nasdaq omx Stockholm”. Master Thesis in Lund University.
Waez, A., Ahmadi, M. R. & Rashidi Baghi, M. (2014). The Impact of Audit Quality on Companies’ Audit Fees. Scientific-Research Journal of Financial Accounting Knowledge, 1, 87-107. (In Persian)
Wallace Wanda, E. (2015). The Economic Role of Auditing in Open Markets and Supervised Markets. Translated by Amir Aslani, Journal of Auditing Organization, 151, Eighth Edition. (In Persian)
Yadavar Nahandi, Y., Derakhshi, R. & Shirmohammadloo, R. (2014). Investigating the Impact of Auditor Size and Auditor Expertise in Industry on Audit Fees. The Second National Conference on Approach to Accounting, Management and Economics. (In Persian)