Examining the impact of audit firm characteristics on audit quality: a meta-analysis approach
Subject Areas : Islamic finance
Mohammad Javad Zare Bahnamiri
1
,
Fatemeh Talkhabi
2
,
Maryam Erfani
3
1 - Department of Accounting, Faculty of Economics and Administrative Sciences, University of Qom, Qom, Iran.
2 - Department of Accounting, ToloueMehr Higher Education Institution, Qom, Iran.
3 - Department of Accounting, ToloueMehr Higher Education Institution, Qom, Iran.
Keywords: Audit quality, Audit firm characteristics, Meta-analysis,
Abstract :
Purpose: The purpose of the present study is to examine the effect of audit firm characteristics on audit quality using a meta-analysis approach. The significance and necessity of the topic have led to numerous studies in this area. Given the inconsistencies and contradictions among previous findings as well as the large body of research conducted, applying the meta-analysis method is considered far more useful than conducting a separate study, as it enables a comprehensive and unambiguous conclusion.
Methodology: To achieve the research objective, the Lipsey and Wilson approach was employed, along with Cochran’s Q test and Egger’s test. A total of 150 studies were reviewed, comprising 52 domestic articles published between 1992 and 2022 (1371–1401 in the Iranian calendar) and 98 international articles published between 1992 and 2022. In these studies, audit quality was treated as the dependent variable, while audit firm characteristics were considered as the independent variables.
Findings: The results indicate that audit firm size and the provision of non-audit services have a positive effect on audit quality, whereas auditor tenure in the industry has a negative impact on audit quality. Moreover, auditor industry specialization and audit quality were found to have no significant relationship.
Originality / Value: By employing the meta-analysis method, this study consolidates and analyzes the contradictory findings of prior research on the effects of audit firm characteristics on audit quality, thereby providing a comprehensive and clear perspective on this subject.
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