The study of equalizer's role of financial reporting council in tax service organization and Iranian society of formal accountants on the effect of audit expectations gap on the shareholder's amount of trust

Document Type : Original Article

Authors

1 Assistant Professor, Department of Accounting. Parandak Institute of Higher Education, Saveh, Iran

2 Assistant Professor, Department of Accounting, Razi University, Kermanshah, Iran.

3 Msc.of Accounting, Parandak Institute of Higher Education, Saveh, Iran

Abstract

Introduction: The trust and assurance of benefactors, shareholders and investors can be achieved through meeting their expectations and filling the audit expectations gap, as an important tool for keeping the trust of shareholders, And the auditor's independence is considered as a basis in accounting profession, because it is assumed to be the basis of the public trust. This research examines the effect of audit expectations gap on the shareholder's amount of trust by the role of financial reporting council modifiers in tax service organization and the Iranian society of formal accountants.
Research Method: This research is based on practical purpose, the type of data is quantitative, and it uses the survey correlation field in descriptive performance. The statistical society in this research are te auditors of tax organization and the auditors of formal society of accountants, 379 people were examined as a sample. This research used the structural equation modeling methods by using the PIS software.
The findings: Results of the study show that the auditor's perceived independence and the improved auditor communication level has a meaningful relation on the shareholder's trust and reducing the auditor's expectations. Also, the moderating role of financial reporting council has a meaningful and positive relation between the audit expection gap and the trust amount of shareholders and auditor's perceived independence and improved auditor communication level.
Conclusion: The results show that there is a meaningful and possitive relation between the audit expectations gap and the trust amount of shareholders.

Keywords


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