Losses Firm's Related Party Transaction and Unexpected Auditing Fees; Testing the Adjustment Effect of Corporate Ownership Structure

Khatiri, Mohammad; Ghasemi, Ali; Darvishtabar Ahmad Chali, Mahtab; Mehri Namak Avarani, Omid

doi:10.22054/qjma.2021.59138.2235

Losses Firm's Related Party Transaction and Unexpected Auditing Fees; Testing the Adjustment Effect of Corporate Ownership Structure

Document Type : Research Paper

Authors

Mohammad Khatiri ¹

Ali Ghasemi ²

Mahtab Darvishtabar Ahmad Chali ³

Omid Mehri Namak Avarani ⁴

¹ َAssistant professor of Accounting, Takestan Branch, Islamic Azad University, Takestan, Iran.

² M.A of Accounting, Takestan Institute of Higher Education, Qazvin, Iran

³ PhD.student of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran.

⁴ PhD student of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran.

https://doi.org/10.22054/qjma.2021.59138.2235

Abstract

The present study investigates the effect of ownership structure in adjusting relationship between related party transactions and unexpected audit fees in loss-making companies. In this way and order to achieve research objectives; Data of 71 companies were extracted for a ten-year period from the beginning of 2010 to the end of 2019, the research variables were calculated and the necessary statistical tests were performed. The method of this research is descriptive-correlational and its design is experimental using post-event approach. The Results Findings There is a positive and significant relationship between transactions with related parties and unexpected audit fees, and the independence of board of directors and duality of CEO's role have a significant effect on this relationship. On the other hand, the size of the board and CEO stability; They had no significant effect on this relationship. Conclusion say Transactions with related parties increase the unexpected costs of auditing and the independence of the board of directors and the duality of the role of the CEO reduce the relationship between transactions with related parties and unexpected auditing costs.

Keywords

Ownership structure

Related Party Transaction

Unexpected audit fees

Subjects

Financial Accounting

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