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, Tolou-e-Mehr University, Qom, Iran.
3 - Department of Accounting, Tolou-e-Mehr University, Qom, Iran.
Keywords: Audit quality, Audit firm characteristics, Meta-analysis,
Abstract :
Objective: The present study aims to examine the impact of audit firm characteristics on audit quality through a meta-analytic approach. The significance and necessity of this subject have led to various studies in this area. Considering the contradictions and inconsistencies in the results and the volume of studies conducted, employing a meta-analysis method to achieve a comprehensive and unambiguous conclusion is far more beneficial than conducting a separate study. Research Methodology: To achieve the study's objective, the Lipsey and Wilson approach was employed, along with the implementation of Cochran's Q and Egger tests. A total of 150 studies (comprising 52 domestic articles from 1992 to 2022 and 98 international articles from 1992 to 2022) were reviewed. In these studies, audit quality was considered as the dependent variable, and audit firm characteristics were treated as independent variables. Findings: The results indicate that the size of the audit firm and the provision of non-audit services positively impact audit quality. However, the auditor's tenure in the industry negatively affects audit quality. Additionally, there is no significant relationship between the auditor's industry specialization and audit quality. Originality / Scientific Contribution: This study, by utilizing the meta-analytic method, consolidates and analyzes the contradictory results of previous research on the impact of audit firm characteristics on audit quality. This approach helps in providing a comprehensive and clear perspective in this domain.
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