Financial Accounting
Mosa Bozorg Asl; mohamad marfo; mahdi mahannejad
Abstract
Linguistic features of information provided by business unit management could facilitate the goals of the transmission of economic facts. In recent years, these characteristics have always been considered in research in the field of accounting and behavioral finance. Therefore, this study seeks to examine ...
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Linguistic features of information provided by business unit management could facilitate the goals of the transmission of economic facts. In recent years, these characteristics have always been considered in research in the field of accounting and behavioral finance. Therefore, this study seeks to examine the effect of financial reporting tone on audit fees. The sample consists of 63 companies listed in Tehran Stock Exchange for the period from 2012 to 2019. Financial reporting tone is measured using the model introduced by Muhammad et al (2019). Also, a natural logarithm is used to measure audit fees. The data are analyzed and the hypotheses are tested based on the multivariate regression model and panel data. The findings show that financial reporting tone has a significant negative effect on audit fees. In other words, if the financial reporting tone conveys an optimistic tone, the audit fee will be less. Results indicate that financial reporting tone reflects factors that auditors consider in assessing audit risk.
Ali Ebrahimi Kordlar; Musa Javani Ghalandari; Kianoosh Ganji
Abstract
Existing theories predict two contradict relation between industry competition and audit fees. Industry competition reduces the agency problem between manager and stockholder of firms and also increases the accuracy of financial statement. It therefore decreases the assessment of risk by auditors and ...
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Existing theories predict two contradict relation between industry competition and audit fees. Industry competition reduces the agency problem between manager and stockholder of firms and also increases the accuracy of financial statement. It therefore decreases the assessment of risk by auditors and they are inclined to charge low audit fee for companies operating in competitive industry. On the other hand industry competition can increase the assessment of business risk by auditor, so it would be expected as the competition in industry rises the audit fee, the current study examine empirically "The impact of monopoly or industry competition on pricing of external audit services "with the information of 96 publicly-held companies listed in Tehran Stock Exchange (TSE) Between 2009-2016. The result of study shows the significant and negative relation between audit fee and industry competition. In other words, auditor charge low audit fee for client which operate in high competitive industry.
Ali Ebrahimi kordlar; Musa Javani Ghalandari; Kianoosh Ganji
Abstract
Existing theories predict two contradict relation between industry competitiveness and audit fees. Industry competitiveness reduces the agency problem between manager and stockholder of firms and also increases the accuracy of financial statement. Therefore decrease the assessment of risk by auditors ...
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Existing theories predict two contradict relation between industry competitiveness and audit fees. Industry competitiveness reduces the agency problem between manager and stockholder of firms and also increases the accuracy of financial statement. Therefore decrease the assessment of risk by auditors and they are inclined to charge low audit fee for companies operate in competitive industry. On the other hand industry competitiveness can increase the assessment of business risk by auditor, so it would be expected as the competitiveness in the industry rise the audit fee increase, the current study examine empirically "The impact of monopoly or industry competition on pricing of external audit services "with the information of 96 publicly-held companies listed in Tehran Stock Exchange (TSE) Between 2009-2016. The result of study shows the significant and negative relation between audit fee and industry competitiveness. In other words, auditor charge low audit fee for client which operate in high competitive industry.
Yahya Hassas Yeganeh; Ali Asghar Arab Ahmadi
Volume 5, Issue 19 , October 2007, , Pages 93-114
Abstract
Despite information asymmetry between auditor and client that may result in adverse selection (undesirable client acceptance), auditor should evaluate all phases of audit engagement before establishing any relationship with prospective client. This is due to the fact that, the prospective clients that ...
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Despite information asymmetry between auditor and client that may result in adverse selection (undesirable client acceptance), auditor should evaluate all phases of audit engagement before establishing any relationship with prospective client. This is due to the fact that, the prospective clients that a firm accepts ultimately determine the nature of the firm's evolving client portfolio and as a result they affect the engagement quality. Professional standards state that firms should establish procedures for making the client acceptance decision. However, no guidance is provided about factors that should be considered in making the decision.
Results of this research show that audit firms consider audit risk factors and auditor business risk factors at the time of biding to firm for perform audit services and thus making decision about prospective client. Finding of this study indicate that personnel assignment, as a risk management strategy, affects client acceptance decisions.
