Identification of Factors Affecting External Oversight and Audit Partner Identification on Audit Quality of Firms Listed on Tehran Stock Exchange

Subject Areas : International Journal of Finance, Accounting and Economics Studies

Davood Ahmadi Nargeseh ¹ , Nader Khedri ² , Rasoul Karami ³

1 -
2 -
3 -

Received: 2024-12-17 Accepted : 2025-01-18 Published : 2024-12-06

Keywords: Auditor, Level of external oversight, Audit partner identification, Audit quality,

Abstract :

This research aimed to identify the factors affecting the level of external oversight and the audit partner identification on the audit quality of firms listed on the Tehran Stock Exchange. This study was exploratory in terms of purpose and qualitative in terms of method. The investigated dimensions and indicators were determined by content analysis. The statistical population of this part of the study consisted of experts from Iranian audit firms, of whom 10 people were selected as a sample in a purposive manner. The interviews were examined using MAXQDA software. The results suggested that 63 initial codes were identified from 210 sections of the interviews. The 63 initial codes were categorized into three main categories and nine subcategories. The category of audit quality includes provision of specific and specific audit reports, positive outcomes of audit services,  overview of financial statements based on audit services, technical affairs of audit services; the category of external audit oversight includes environmental oversight in the provision of audit services, compliance with the laws and regulations of audit services, implementation of agreed-upon procedures for handling audit financial information; the category of audit partner identification includes dimensions of providing audit services between auditor colleagues, and organizational cooperation in audit services.

 

References:

Barrainkua, I., & Espinosa-Pike, M. (2019). The influence of auditors’ professionalism on ethical judge-ment: Differences among practitioners and postgraduate students. Revista de Contabilidad Spanish Accounting Review. http://dx.doi.org/10.1016/j.rcsar.2017.07.001
Bentley, K. A. , Omer, T. C. , & Sharp, N. Y. (2013). Business strategy, financial reporting irregularities, and audit effort. Contemporary Accounting Research: 30 (2) , 780–817.
Broberg, P., Umans, T., Skog, P., Theodorsson, E. (2020). “Auditors’ professional and organizational identities and commercialization in audit firms”, Accounting, Auditing & Accountability Journal, Vol. 31 Issue: 2, pp.374-399, https://doi.org/10.1108/AAAJ-02- 2014-1607.
Chi, H, Y. , Chin, C, L. (2011). Firm versus partner measures of auditor industry expertise and effects on auditor quality. Auditing: A Journal of Practice & Theory: 30 (2) , 201–229.
Chin, C. L. , & Chi, H. Y. (2009). Reducing restatements with increased industry expertise. Contemporary Accounting Research: 26 (3) , 729– 765.
Dichev, I. D. , Graham, J. , Harvey, C. R. , Rajgopal, S. (2013). Earnings quality: Evidence from the field. Journal of Accounting and Economics: 56 (2–3) , 1–33 (Supplement).
Hao a,Y.F., Niu a, H.J., Li b, l.p., Yue a, S.J. (2014). Measurement of professional identity in Chinese nursing students. international journal of nursing sciences. 137-144.
Krishnan, G. V. (2003). Does Big 6 auditor industry expertise constrain earnings management? Accounting Horizons: 17, 1–16 (Supplement).
Payne,M.Jeremy(2007). The Bonds of Identification Revisited:Exploring the Impact of Organizational Identification in non-for-profit Organization. Dissertation Submitted to the College of Vanderbilt University in Partial Fulfilment of the requirement for Degree of Doctor of Education.
Reichelt, K. J. , Wang, D. (2010). National and office-specific measures of auditor industry expertise and effects on audit quality. Journal of Accounting Research: 48 (3) , 647–686.
Ringer, R. C., & Boss, R. W. (2000). Hospital professionals' use of upward influence tactics. Journal of Managerial Issues, 92-108.
Tagesson, T. and Öhman, P. (2017), “To be or not to be – auditors’ ability to signal going concern problems”, Journal of Accounting & Organizational Change, Vol. 11 No. 2, pp. 175-192.
Wang, S.-T. (2014). Consumer characteristics and social influence factors on green purchasing intentions. Marketing Intelligence & Planning, 32(7), 738–753.
Yuan, R. , & Cheng, R. , & Ye. R. (2016). Auditor Industry Specialization and Discretionary Accruals: The Role of Client Strategy. The International Journal of Accounting: 51 (2) , 217–239.