Accounting report
Masoumeh Shahsavari; Mohammad Reza Abbaszadeh; Hamze hesari
Abstract
In the present study, the relationship between the qualitative information of the auditor's report and the quality of accounting has been discussed. In particular, the relationship between the tone of the auditor's report and the audit fee (audit quality criterion based on the input of the audit process) ...
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In the present study, the relationship between the qualitative information of the auditor's report and the quality of accounting has been discussed. In particular, the relationship between the tone of the auditor's report and the audit fee (audit quality criterion based on the input of the audit process) has been examined with respect to the concepts of risk, client business risk, and litigation risk. To test the research hypotheses, 360-year-firms data of Iranian Stock Exchange were used during a period of 6-years, three years before and three years after the revision of Auditing Standard No. 700. Textual data were analyzed using Maxqda10 text analysis software and after quantification along with other quantitative data were analyzed using multivariate linear regression in Ives software and SPSS Eviews 9. The results indicate a weak inverse relationship between the optimistic tone and the audit fee variable. In addition, the findings showed that the acceptance of the requirements of Auditing Standard No. 700 does not make significant changes in the relationship between the tone of the auditor's report and the remuneration compared to the period before the review. In general, the results of the research indicate evidence of the predominance of the signaling effect (albeit poorly) in the sample.
elahe sadat hosseini; Mozaffar Jamalianpour
Abstract
Since the auditor's information tool is the audit report, the language and wording used in this report are critical. Although the auditor's report has improved over time, it still suffers from problems. Therefore, audit reports must be prepared carefully to reduce misconceptions as much as possible. ...
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Since the auditor's information tool is the audit report, the language and wording used in this report are critical. Although the auditor's report has improved over time, it still suffers from problems. Therefore, audit reports must be prepared carefully to reduce misconceptions as much as possible. In the present study, the effect of earnings management on the tone and complexity of the auditor's reports has been investigated. After prior research and hypothesis development, 135 companies listed with the Tehran Stock Exchange during the years 1396 and 1397 were selected and tested using ordinary least squares regression. The results indicate a significant negative relationship between accrued earnings management and the positive tone of the auditor's report. The findings also show a significant positive relationship between earnings management and reporting complexity. In addition to expressing the importance and application of this issue for auditors, text mining of audit reports can also help policymakers and developers of reporting standards recognize the expectations gap and take steps to reduce this gap by providing readable audit reports. In addition, it helps to broaden people's understanding of the effects of using qualitative information, such as reporting language, in financial and auditing reports. Also, it shows the relationship between the tone of the auditor's report that is influenced by strategic choice and the use of qualitative disclosure is closely related to the company's performance.