The effect of the components of the Emden model on the success of the Merging of Audit Firms with an emphasis on audit quality

Document Type : Original Article

Authors

1 Ph.D Student of Accounting, Karaj Branch, Islamic Azad University, Karaj, Iran

2 Assistant Professor of Accounting, Karaj Branch, Islamic Azad University, Karaj, Iran

3 Associate Professor, Department of Accounting, Karaj Branch, Islamic Azad University, Karaj, Iran

Abstract

The globalization of business activities and the need to provide services to these companies has made audit firms tend to merge in order to meet the needs of these companies. Incentives such as entering new markets, improving research and development, access to new technologies, economic savings and the need for expertise in the industry and increasing market share have played a significant role in the merging of audit firms. This article aims to explain the factors affecting success in the merging of audit firms, including compatibility, expertise and reliability of the partner, and taking into account the mediating variable of inter-organizational coordination and emphasis on audit quality. This research; It is a type of applied and survey research, and the statistical sample of the research consists of 390 working chartered accountants who are members of the Chartered Accountants Society. needed information; It was collected by completing the questionnaire in 1401 and by random sampling method. The results of the hypothesis test using structural equation modeling using the partial least square method show that among the three partner selection factors: partner compatibility and reliability affect inter-organizational coordination, and inter-organizational coordination also contributes to success. It helps in the merging of audit firms. On the other hand; The audit quality variable does not moderate the relationship between inter-organizational coordination and success in the merging of audit firms.

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