audit fee

Open Access Article

1 - Audit Fee and the Basis of its Determination and Reasons for Dumping in Iran and the Effect of that on Financial Reporting Quality
Shahram Chahrmahali Roya Darabi Abolfazl Gharani Hassan Chenari

Objective: This study investigates the audit fee and the basis for determining that and the reasons for dumping in Iran and the impact of dumping on the quality of financial reporting.

Objective: This study investigates the audit fee and the basis for determining that and the reasons for dumping in Iran and the impact of dumping on the quality of financial reporting. Manuscript profile

Open Access Article

2 - The impact of corporate governance on Client acceptance decisions and audit fees
Yahya H. Yeganeh Iman Dadashi

The client acceptance judgment and determination of audit fee  is a critical first phase in the audit firm’s risk management process, given the increasing risk of litigation and accounting scandals. Audit firms continue to devote considerable attention to the More

The client acceptance judgment and determination of audit fee  is a critical first phase in the audit firm’s risk management process, given the increasing risk of litigation and accounting scandals. Audit firms continue to devote considerable attention to the client acceptance judgment by evaluating client-related risks and adopting audit strategies to manage such risks to acceptable levels. In this study, the impact of corporate governance mechanisms such as the Board of directors structure, auditing, majority shareholder and institutional investors on independent auditor's judgment such as Client acceptance decisions and audit fees, has been investigated. The hypothesis of this study were tested for 83 Certified Public Accountant in 1388 by using a questionnaire survey investigates and the results reported here indicate that only the internal auditing has effect on Client acceptance decisions and audit fees and the rest of governance mechanisms don't have any effect.   Manuscript profile

Open Access Article

3 - the relationship between audit report quality and audit fees of accepted companies in Tehran Stock Exchange
فاطمه داروغه حضرتی زهرا پهلوان

Audit fees are the important issues that preoccupy the mind of client and auditorand should be negotiated clearly about it. Different factors can effect on audit fees.Among these factors, audit report quality can be noted. The main question of thisresearch is that wheth More

Audit fees are the important issues that preoccupy the mind of client and auditorand should be negotiated clearly about it. Different factors can effect on audit fees.Among these factors, audit report quality can be noted. The main question of thisresearch is that whether there is a relationship between audit report quality and auditfees. For this purpose, the data needed for this research has been collected from 54companies in the period 1382 to 1388. Statistical method used to test hypothesis ismultiple regression. This research includes 4 hypotheses that investigate therelationship between earnings management, qualified provisions in the audit report,type of auditor and board size with the amount of audit fees. The results show thatfour factors listed above, have a direct and meaningful relationship with the amount ofaudit fees. Manuscript profile

Open Access Article

4 - Earnings Management and Audit Opinion: Evidences of Private Audit Firms
بهمن بنی مهد یحیی حساس یگانه نرگس یزدانیان

AbstractThis study investigates relation between earnings management and audit opinion inprivate sector of auditing. The sample period is 10 years from 2003-2012. The number ofsample is 106 listed firms of Tehran Stock Exchange (TSE). Using correlation method andmultipl More

AbstractThis study investigates relation between earnings management and audit opinion inprivate sector of auditing. The sample period is 10 years from 2003-2012. The number ofsample is 106 listed firms of Tehran Stock Exchange (TSE). Using correlation method andmultiple regression, the results of this study show that there is a relation between earningsmanagement, size, profitability, debt ratio, audit fees, governmental ownership and qualifiedaudit opinion paragraphs in the auditor's report. Moreover, research findings indicate thatthere is no relation between firm complication, auditor change, management change withqualified audit opinion paragraphs. Research evidence claim that positive relation betweenearnings management and qualified audit opinion paragraphs can be the sign of increase inaudit quality in private sector of auditing. Manuscript profile

Open Access Article

5 - Effect of Audit Fee on Audit Opinion
بهمن بنی مهد مهدی مرادزاده فرد مهدی زینالی

Large audit fee can create economical dependence between auditor and clients.Because auditors may represent a clean report to maintain clients and earn more auditfees. This may cause a doubt on auditor's independence. In this paper, we havedetermined the impact of audit More

Large audit fee can create economical dependence between auditor and clients.Because auditors may represent a clean report to maintain clients and earn more auditfees. This may cause a doubt on auditor's independence. In this paper, we havedetermined the impact of audit fee on unqualified audit report over a 9- periodfrom 2002 to 2010 in 144 firms listed in Tehran Stock Exchange. Research methodis correlation and hypotheses test are done by logistic regression. Findings of ourresearch show that, audit fee has a positive relation with unqualified audit report.The results of this study also show firm size, loss report and firm age affect onunqualified audit report. Another variables such as auditor change, auditor type andauditor tenure don't affect on unqualified audit report. Manuscript profile

Open Access Article

6 - The Impact of the level of earning management and audit fees an evidence from ISE
فاطمه داروغه حضرتی زهرا پهلوان

Audit fees is one of the interesting issues of researchers. Different factors caneffect on audit fees, such as earnings management and board independence. Thefundamental question of this research is, whether there is a relation between earningsmanagement, board independ More

Audit fees is one of the interesting issues of researchers. Different factors caneffect on audit fees, such as earnings management and board independence. Thefundamental question of this research is, whether there is a relation between earningsmanagement, board independence and audit fees concerning the level of firmprofitability? To this end, the required data were gathered from 57 firms whichaccepted in Tehran Stock Exchange (TSE) from 1382 to 1388. The statistical teqniqueused for examining the hypotheses were multiple regression, one-way ANOVAanalysis. 3 hypotheses were developed to investigate the relation between the level offirm profitability on the relation of earnings management and board independencewith audit fees and comparability of the audit fees in different firms with regard to thelevel of profitability. The results suggest, firms that have higher ratio of outsidedirectors pay lower audit fees. The results also indicate that the higher level ofprofitability, the higher the audit fees. Manuscript profile

Open Access Article

7 - The Impact of Investor Protection on the Relationship between Capitalized Development Costs and Audit Fees
Azin Shahmohammad Zahra Pourzamani

The objective of this study is to examine the impact of investor protection on the relationship between capitalized development costs and audit fees. 188 firms were chosen from Tehran Stock Exchange (statistical population) over years 2010 to 2017. In this research, des More

The objective of this study is to examine the impact of investor protection on the relationship between capitalized development costs and audit fees. 188 firms were chosen from Tehran Stock Exchange (statistical population) over years 2010 to 2017. In this research, descriptive statistics including tables and charts, central tendencies, dispersion, distributions for describing the sample, and combined regression method were used to analyze the data related to the research aspects. The Excel software was used to extract the data and the Eviews software was used to perform statistical tests. The normal test of the variables of the research is based on the Jarck-Braw statistic and its probability at the error level of 5%. And the Chow test was used to determine if the combined data is more efficient to estimate the desired function, and Fisher's statistic was used to examine the significance of the regression model. Also, t-Student statistic was used to examine the significance of the coefficients of the explanatory variables of regression model and Durbin-Watson test was used to investigate the non-self-correlation of model residuals. The results showed that investor protection and capitalized development costs have no significant impact on audit fees, but investor protection has significant impact on the relationship between capitalized development costs and audit fees Manuscript profile

Open Access Article

8 - Investigating the role of state ownership on the relationship tax avoidance and audit fees: The empirical test of the Deep Pocket Theory
Rohollah Arab Mohammad Gholamrezapoor Narjes Amirnia Amir Emadodini

Tax avoidance leads to high information asymmetry of enterprises and weakens the quality of accounting information. Auditors need to implement additional auditing procedures to control audit risks that may arise from tax avoidance, thus charging higher audit fees. Based More

Tax avoidance leads to high information asymmetry of enterprises and weakens the quality of accounting information. Auditors need to implement additional auditing procedures to control audit risks that may arise from tax avoidance, thus charging higher audit fees. Based on the trend of risk-based auditing and “deep pocket” theory. Therefore, based on the risk-based audit process and “deep pocket” theory, the present study investigates the association between tax avoidance and audit fees with respect to the moderating effect of state ownership on listed companies in the Tehran Stock Exchange. To test the research hypotheses, the financial information of the listed companies in Tehran Stock Exchange was used between 2013 and 2017, so that after applying the limitations in this research, a final sample of 88 companies was selected. After measuring the variables of the research, multivariate linear regression analysis was used to test the research hypotheses. The hypothesis test is also done using Eviews econometric software and statistical techniques of panel data. The results of statistical tests indicate that tax avoidance increases the amount of corporate audit fees. In addition, the results show that the positive impact of tax avoidance on audit fees in state-owned companies is far lower. Also, the results of the sensitivity analysis test showed that the use of alternative metrics to measure tax avoidance also has no effect on the main results of the research, and the results of the research are robust. Manuscript profile

Open Access Article

9 - Investor Sentiment, Misstatements, and Auditor Behavior
Faegh Ahmadi amirhossein jamali mohammad hadi hosseini sarani

10.30486/fbra.2022.1950741.1071

High investor sentiment has been linked with opportunistic managerial behavior in the face of more optimistic investors and analysts. In this study, this line of work is developed by documenting the increased likelihood of misstatements and the consequent increase in au More

High investor sentiment has been linked with opportunistic managerial behavior in the face of more optimistic investors and analysts. In this study, this line of work is developed by documenting the increased likelihood of misstatements and the consequent increase in audit risk in the face of high investor sentiment. The main objective of this study is to investigate the effect investor sentiment on misstatements, and auditor behavior of listed companies in Tehran Stock Exchange. The sample consists of 94 firms listed in Tehran Stock Exchange in the period from 2017 to 2021. The research hypotheses were tested using multivariate regression model with panel data method. The results showed that investor sentiment have significant positive effect on the misstatements with in 95% confidence level. In addition, other findings indicated existence of a significant positive effect investor sentiment on audit fees and going concern opinion. As a result, The findings enhance the understanding of how investor sentiment affects misstatements, and auditor behavior, and enrich the literature on corporate auditor pricing and reporting decisions. Manuscript profile

Open Access Article

10 - An Investigation of Financing Costs Factors on the Auditor's Qualified Report in the Companies Listed in Tehran Stock Exchange
Mahmoud Hematfar Hossein Soheili

10.22034/amfa.2017.531314

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Open Access Article

11 - The relationship between managerial ability and audit fees
Mahtab Ebrahimkhani Mehdi Beshkoh

The main purpose of this study is to investigate the relationship between managers' ability and audit fees in companies admitted to the Tehran Stock Exchange. The costing of audit services has been one of the topics of interest to many researchers, and so far many studi More

The main purpose of this study is to investigate the relationship between managers' ability and audit fees in companies admitted to the Tehran Stock Exchange. The costing of audit services has been one of the topics of interest to many researchers, and so far many studies have been done in this field. Most of them pursue a major goal, which is to identify the factors influencing audit fees. One of the most important determinants of audit fees is the concept of managerial ability. In accounting literature, the ability to manage one of the dimensions of human capital is a company that It is classified as an intangible asset. Define the management as the efficiency of managers towards competitors in the conversion of corporate resources. Findings show that management ability is a factor influencing the decisions of auditors. In order to measure the management ability, The statistical sample consists of 81 companies that have been selected by systematic elimination method, which consisted of 648 companies in total, covering the period from 2009 to 2016. This research is applied and used to test the hypothesis. By examining the research hypothesis, there was a significant negative correlation between managers' ability and audit fees. This result shows that firms that have more powerful executives than other companies pay less audit fees. Manuscript profile

Open Access Article

12 - Experimental study of alignment and entrenchment theories in explaining the impact of family ownership on the relationship between the financial reporting optimistic tone and audit fees
roohollah arab shirin panahi arvanagh Kolsoom Soofi Sheykh mohammad gholamrezapoor

The tone of financial reporting, as one of the important aspects of quality information of financial reports is determined by the ratio of positive and negative words in the annual financial reports, which can be considered as influential factors for the auditor as a fa More

The tone of financial reporting, as one of the important aspects of quality information of financial reports is determined by the ratio of positive and negative words in the annual financial reports, which can be considered as influential factors for the auditor as a factor to assess the risk of the owner and affect the audit fee. According to theories of alignment and entrenchment, family ownership may reduce audit fees by reducing information asymmetry and agency costs, or by increasing audit fees through financial misuse and fraudulent financial reporting. Therefore, the aim of the present study is to investigate the relationship between the financial reporting optimistic tone and audit fees and to study the moderating effect of family ownership on this relationship with respect to theories of alignment and entrenchment. To achieve the purpose of this study, the financial information of 88 companies listed on the Tehran Stock Exchange in the period between 2012 and 2019 has been done. The results of statistical tests of the research show that the financial reporting optimistic tone leads to a reduction in audit fees. In addition, the results showed that, in accordance with the alignment theory, family ownership it moderates and intensifies the relationship between the financial reporting optimistic tone and audit fee. Manuscript profile

Open Access Article

13 - Assess the relationship between the cost of auditing and the overlap of board committees
mostafa sayyahi

Abstract:Changes that have taken place in recent years have increased the independence of auditors in the face of management. One of these changes is the expansion of the use of audit committees in companies.In this article, the situation of overlap of specialized commi More

Abstract:Changes that have taken place in recent years have increased the independence of auditors in the face of management. One of these changes is the expansion of the use of audit committees in companies.In this article, the situation of overlap of specialized committees of the board of directors is examined and their impact on the audit fee of companies is evaluated. The main question of this study was whether there is a significant relationship between the audit fee and the overlap of the audit committee.The results showed that the effect of the overlap of the audit committees and the salary and benefits committee and the expertise of the members of the audit committee on the audit fee was inverse and significant. In other words, increasing the overlap of the specialized committees of the board of directors will reduce the amount of auditing fees; On the other hand, increasing the expertise of the members of the audit committee increases the amount of audit fees. Manuscript profile

Open Access Article

14 - Investigating the Relation between Managers Confidence and Audit Fees with Considering the Mediation Role Audit Institution Type
hamidreza kiani Ali Asghar Anvary Rostamy Mansour garkaz

In this study, the relationship between overconfidence and the cost of auditing fees of companies listed on the Tehran Stock Exchange with the mediating role of the type of auditing firm is examined. This research is of applied and descriptive-correlation type. To estim More

In this study, the relationship between overconfidence and the cost of auditing fees of companies listed on the Tehran Stock Exchange with the mediating role of the type of auditing firm is examined. This research is of applied and descriptive-correlation type. To estimate the model and test the research hypotheses, out of 480 companies, 128 companies were selected as a sample by the systematic elimination method during the period 1389 to 1396. Research findings showed; In the regression model related to the research hypotheses, the F-statistic for all three research hypotheses is equal to 2.36, 2.50, 2.49 and the significance level of this statistic is less than 0.05, which indicates The appropriateness of the fit is done. Also, Watson camera statistics are equal to 2.15, 2.16, 2.15, respectively, and therefore there is no possibility of serial autocorrelation in the model. The coefficients for determining these models were 0.25, 0.26, and 0.26, respectively, indicating the suitability of the regression model. According to the presented statistics, all three research hypotheses are confirmed and it can be stated that there is a relationship between managers 'confidence and selection of auditing type, between auditing type and auditing cost and also between managers' confidence and auditing fees. Manuscript profile

Open Access Article

15 - Costs of Mandatory Audit firm Rotation: Evidence from Audit Fees and Audit Timeliness
Mohammad Bagher Rasoulkhani Ghasem Blue Parastoo Dehpour

10.30495/faar.2024.1976943.3614

Concerns about the destructive effects of long-term relationships between auditors and business owners on auditor independence and audit quality have led to the formulation of laws limiting these relationships; Therefore, the policy of mandatory rotation, in order to im More

Concerns about the destructive effects of long-term relationships between auditors and business owners on auditor independence and audit quality have led to the formulation of laws limiting these relationships; Therefore, the policy of mandatory rotation, in order to improve the independence of accountants and as a result to increase the quality of auditing, has attracted the opinion of legislators. Critics of this policy believe that the implementation of such a policy will lead to an increase in audit costs as well as a delay in submitting the audit report. Indeed, critics focus on the cost of forced rotation. Therefore, the aim of the current research is to investigate the price of forced rotation by considering two direct consequences including; The audit fee and the timeliness of the audit report. For this purpose, a sample of 120 companies listed on the Tehran Stock Exchange during the period of 2017-2022 has been selected. The ordinary least squares regression model was also used to test the research hypotheses. The obtained results show; During the mandatory rotation period, the audit costs increased and the audit report was delayed. The results of this research support the accounting profession's arguments that mandatory turnover is not without cost to various stakeholders, including clients, auditors, and investors. Manuscript profile

Open Access Article

16 - The Impact of the Risk Committee on the Quality Financial Reporting and Auditing Fees
Saeed Omidi Kordsholi Mohammad reza Pajoohi

10.30495/faar.2024.709446

Abstract Risk Management Committee alone obliges auditors to conduct more regular audits and call for escalated levels of audit oversight. In other words, external auditors are obliged to dig deeper into financial statements which is more time consuming and incurs high More

Abstract Risk Management Committee alone obliges auditors to conduct more regular audits and call for escalated levels of audit oversight. In other words, external auditors are obliged to dig deeper into financial statements which is more time consuming and incurs higher audit fees. The risk management committee may also encourage companies to allocate sufficient resources to their internal control systems and place them at the center of attention, which should in turn lead to more reliable financial statements. The present study was an attempt to investigate the impact of the risk management committee on the quality of financial reporting and auditing fees. To this end, a sample of 103 companies listed on the Tehran Stock Exchange was selected. The panel data method and principal component analysis (carried out within the framework of R statistical software) were used to test the hypotheses. The results showed that the risk management committee has no significant effect on the quality of financial reporting and auditing fees. Manuscript profile

Open Access Article

17 - The Moderating Effect of Auditor's Reputation on the Relationship between Audit Fee and the Incidence of Accounting Misstatements
Hassan Yari Rafik baghomian

10.30495/faar.2022.697090

AbstractThe present study was conducted to investigate the moderating effect of auditor' reputation on the relationship between audit fee and the incidence of accounting misstatements. In this regard, we analyzed financial statements of 107 companies listed in Tehran St More

AbstractThe present study was conducted to investigate the moderating effect of auditor' reputation on the relationship between audit fee and the incidence of accounting misstatements. In this regard, we analyzed financial statements of 107 companies listed in Tehran Stock Exchange (TSE). The present study is an applied research and was conducted by descriptive-correlation method. In this study, Dependent variable is accounting misstatements and equals 1 if the firm subsequently restates its current year financial statements, otherwise zero. The audit fee and the auditor's reputation are the independent and moderating variables of the research, respectively.Hypothesis testing was carried out through logistic regression model.The results indicated thataudit feehas a negative and significant relationship with the incidence of accounting misstatements and charging high (low) audit fee by auditor reduces (increases) the incidence of accounting misstatements and these findings is stronger in relation to audit firms that have a high reputation. In other words, the auditor's high reputation exacerbates the negative relationship between audit fee and the incidence of accounting misstatements. Manuscript profile

Open Access Article

18 - Investigating the Effect of Accounting Personnel Quality on Audit Fees and Content of Audit Report
Fariba Maleki Masoumeh Alavi

10.30495/jdaa.2023.698891

AbstractConsidering that today accounting information systems have played a very important role in the workflow of organizations and in the economic environment of countries, have an important role to play, so the validation of this information can increase its reliabil More

AbstractConsidering that today accounting information systems have played a very important role in the workflow of organizations and in the economic environment of countries, have an important role to play, so the validation of this information can increase its reliability. Employees play a very important role in the activities of the company and can lead to the improvement of accounting processes with their positive role in information reliability. Therefore, in this study, The effect of Accounting Personnel Quality on audit fees and content of audit report in accepted companies Tehran Stock Exchange has been paid. In this study, 118 companies in the period 2013-2019 have been studied. To test the hypotheses, panel and logistic regression model was used. The research findings show that the quality of accounting staff has a significant negative effect on audit fees and the number of clauses after commenting and a significant positive effect on the type of comment (towards acceptable comment). Finally, the quality of accounting staff does not have a significant effect on the number of condition clauses. Manuscript profile

Open Access Article

19 - Investigating of the relationship between liquidity and firms’ ownership concentration whit considering moderating role of corporate governance
shokrollah khajavi GholamReza Rezaei Amir Safaiee

10.30495/afi.2021.1939936.1045

The main purpose of this research is to study the relationship between ownership concentration and liquidity for the companies listed on Tehran Stock Exchange (TSE) with considering moderating role of corporate governance. Another Aim was from purpose of this study is t More

The main purpose of this research is to study the relationship between ownership concentration and liquidity for the companies listed on Tehran Stock Exchange (TSE) with considering moderating role of corporate governance. Another Aim was from purpose of this study is to extend priorresearch on this topic. to achieve goals, an attempt will be made to answer the following question: “Is there a significant relationship between ownership concentration, corporate governance, and liquidity?” The research population composes of total companies listed in the TSE and statistical sample composes of 145 companies. The regression analysis whit SPSS and Eviews software are used for testing hypothesis of the research. The results suggest that there is a negative relationship between ownership concentration and liquidity. The relationship between corporate governance and liquidity is positive and significance. Also, the results showed that corporate governance have a moderating role in the relationship between ownership concentration and liquidity. Manuscript profile

Open Access Article

20 - Investigating the effect of economic uncertainty on the relationship between comparability of financial statements and the stock price crash riskon Tehran Stock Exchange
Zoheyr Alipourzadeh Alireza Ghanbarzade Mohammad Abbedi Arezo Jabari

10.30495/afi.2022.1945982.1070

When auditors see an abnormal fluctuation in profit over the previous year, they will perceive it as an audit risk. Therefore, in their response to the perceived risk, there will be more effort and attention. They increase their audits to the same level, and this affect More

When auditors see an abnormal fluctuation in profit over the previous year, they will perceive it as an audit risk. Therefore, in their response to the perceived risk, there will be more effort and attention. They increase their audits to the same level, and this affects the audit fee. Management transactions, on the other hand, are part of the transactions with affiliates that companies make with the main managers of the business unit or their close relatives. So far, it has received less attention in the research literature and can affect the relationship between profit fluctuations and audit fees. Therefore, the present study aimed to investigate the effect of management transactions on the relationship between annual earnings fluctuations and audit fees in companies listed on the Tehran Stock Exchange. EViews statistical software was used for statistical analysis.  In this research, 150 companies (1050 years of company) were selected to test the research hypotheses between 2013 and 2020.To test the research hypotheses with data consolidated from multiple linear, regression analyzes were used. In general, the summary of the results of testing the research hypotheses show that annual profit fluctuations have a significant positive effect on the audit fees of companies listed on  Tehran Stock Exchange. The results also show that managerial transactions increase the positive relationship between annual earnings fluctuations and audit fees of companies listed on the Tehran Stock Exchange. Manuscript profile

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