The Effect of Auditor Advocacy Attitudes and Client Identification on Auditor's Initial Judgment and Search Strategy of Evidence
behrooz
badpa
Ph.D Candidate of Accounting, Shahid Baonar University, Kerman
author
omid
Pourheidari
Full Professor of Accounting, Shahid Bahonar University, Kerman
author
Ahmad
Khodamipour
Associate Professor of Accounting, Shahid Bahonar University,
author
text
article
2019
per
Researchers have recently focused on the effects of non-financial factors on auditor’s objectivity. One of the important non-financial factors affecting auditors’ objectivity is their biased attitudes. The main purpose of this study was to examine the effect of auditor’s advocacy attitudes on their objectivity in initial judgment and consequent search strategies of audit. In this study, 164 independent auditors as members of the trusted audit institutions of the Stock Exchange were tested in 2018. The results of the present research at 95% confidence level indicated that auditor’s advocacy attitudes had affected their initial judgment; therefore, auditors with higher advocacy attitudes could exhibit initial judgments of client-favorable and auditors with lower advocacy attitudes could have initial judgments of client-unfavorable. Auditor identification with their client also had a positive effect on auditor’s client acquiescence. In addition, the variables of auditor's experience and professional identification could have a significantly negative effect on initial judgment (probability of non-disclosure of contingent liability), which could be considered in accordance with principle of conservatism. The results of the second model also showed that auditor’s advocacy attitudes and initial judgment had a significant and positive effect on search strategy of audit evidence; that is, auditors could search evidence that was in line with auditor’s advocacy attitudes and initial judgment of auditor. Furthermore, no significant relationship was observed between auditor identification with their client and consequent search strategies of auditors.
Applied Research in Financial Reporting
Audit Organization
2345-3125
8
v.
1
no.
2019
7
42
https://www.arfr.ir/article_93098_491a39aeae9ace9a25a5b25b102377b6.pdf
The Relation of Corporate Social Responsibility and Auditor Selection; Focusing on Firms’ Auditors Reputation
shokrollah
khajavi
shiraz university
author
alireza
pourgoudarzi
shiraz university
author
Abdolmajid
Sarmadinia
Department of Accounting, Shiraz University, Shiraz, Iran
author
text
article
2019
per
The goal of this research is to study the relation between corporate social responsibility and auditor selection, as two influencing factors on firms’ reputation of listed companies of Tehran Stock Exchange during 1388-1395. In this research corporate social responsibility is measured by utilizing coding method according to 25 criteria through four dimensions (environment issues, products and services, staffs and society responsibilities) which are clarified in board of directors’ report. Moreover, the operating variables of auditor selection and auditor reputation are considered at two levels of industry and market. The statistical method of the research is panel data regression. Research findings show that the relation between corporate social responsibility and auditor reputation is positive and significant at the market level. On the other hand and at the market level the relation of corporate responsibility and auditor reputation is positive with any significancy. Results of findings hold that companies do more declaration of their corporate social responsibilities tend to select independent auditors whom have high level of creditability through industry but they do not pay any severe attention to auditor reputation at the market level.
Applied Research in Financial Reporting
Audit Organization
2345-3125
8
v.
1
no.
2019
43
66
https://www.arfr.ir/article_93287_820f49b8fd0d4a7a559514e8acbde025.pdf
Identification of Voluntary Disclosure Indicators and Corporate Governance: The gap between current and expected Situations
Hossein
Parsian
PhD Student of Accounting, Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran
author
Hossein
Kazemi
Assistant professor of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran
author
javad
rezazadeh
Associate Professor, Department of Accounting, Faculty of Management and Economics, Tarbiat Modarres University, Tehran, Iran.
author
text
article
2019
per
Corporate governance mechanisms can provide the disclosure voluntary of corporations and consequently, it would lead to increasement in information symmetry, Investors confidence, improving liquidity of stocks and profitability of companies which is essential for the national’s economic development. For this reason, in this study the identification of voluntary disclosure indicators and gap analysis between the current and expected situations of these indicators and corporate governance from the perspective of the accounting and financial pundits were discussed. In this survey research, the sampling method was purposive and for hypothesis test, descriptive statistics and T tests by SPSS software (version 21) was conducted. The results indicate that there is a significant difference between the current and expected situations of voluntary disclosure indicators and also corporate governance. It is expected that the establishment of good corporate governance mechanisms, the field of voluntary disclosure and hence the national’s economic development infrastructure would be provided.
Applied Research in Financial Reporting
Audit Organization
2345-3125
8
v.
1
no.
2019
67
95
https://www.arfr.ir/article_93289_3bf6693a8ff366318b7b4e5db2e946ae.pdf
Client Business Strategy and Audit Fee
mohammad reza
nikbakht
faculty member of Tehran university
faculty member
author
Hamed
Omrani
Assitnace professor ,School of Accounting, Faculty of Finance
Kharazmi University, Tehran, Iran
author
omid
Akhoundi
Ph.D Student, University of Tehran Accounting
author
text
article
2019
per
The amount of audit effort and, consequently, audit fee of companies is affected by the type of Business strategy. A review of the business strategy and its relation to auditors' efforts in the context of Standard No. 11 of the Audit Supervisory Board refers to the need for auditors to have adequate knowledge of the business and industrial environment of the client for the planning of the audit work. In this regard, the main objective of this research is to investigate the relationship between the type of business strategy of the client and the audit fee of the companies. Following the researches of Mills and Snow (1978, 2003), in this research, indicators of capital intensity, renovation of property and equipment, overhead efficiency and financial leverage were used for determining the type of client business strategy (aggressive strategy and defensive strategy). The statistical population of this research is the companies accepted in the Tehran Stock Exchange during the years 1387 to 1394 and the sample size is 680 observations (year-company). The results of the data analysis show that there is a positive (direct) correlation between the client's aggressive strategy and the audit fee. These results also show that the aggressive strategy has a more positive correlation with audit fee compared to the defensive strategy.
Applied Research in Financial Reporting
Audit Organization
2345-3125
8
v.
1
no.
2019
97
118
https://www.arfr.ir/article_93103_cb0f24d20f29ca5274beea78d75ac048.pdf
A Survey on the Relationship between Product Market Competition with Cost Stickiness Behavior and Corporate Governance
Mohammad Hossein
Safarzadeh
Department of Accounting and Finance, Faculty of Management, Shahid Beheshti University, Tehran, Iran
author
hamed
anari
Department of Accounting and Finance, Faculty of Management, Shahid Beheshti University, Tehran, Iran
author
text
article
2019
per
This research investigates the impact of product market competition on cost stickiness behavior and corporate governance. To achieve this goal, 200 companies were selected as a statistical sample and the required data were collected using the Codal database for a period of six years from 2013 to 2018. The product market competition is our independent variable. The cost stickiness behavior and corporate governance are considered as dependent variables. Also, the effect of independent variable on the dependent variables has been tested by using the multivariate regression. The results of the research show that increasing the market competitiveness of the product does not make the costs display more sticky behavior. In other words, product market competition has not significant relationship with cost stickiness. In addition, the results of statistical tests indicate that there is no significant relationship between product market competition and corporate governance in the entities studied in this research.
Applied Research in Financial Reporting
Audit Organization
2345-3125
8
v.
1
no.
2019
119
146
https://www.arfr.ir/article_93104_14f30b7b2b883da80e929a0e2e86b079.pdf
Effect of Using Extensible Business Reporting Language on Transparency of Financial Information in Listed Companies in Tehran Stock Exchange
zeynab
zahmatkesh
1-PhD student, Department of Accounting, Yazd Branch, Islamic Azad University, Yazd, Iran
author
mahmoud
moeinadin
Associate Professor, Department of Accounting, Yazd Branch, Islamic Azad University, Yazd, Iran
author
Mahdi
Nazemi Ardakani
Accounting Dep., Faculty of Economics, Management & Accounting, Yazd University, Yazd, Iran.
author
text
article
2019
per
Today, there are tremendous developments in the field of information and communication technology. XBRL is a new technology for the transparent exchange of financial and commercial reporting data which through common language and particular format can lead to reduced agency costs and improved information users' decision-making around the world. Therefore, the present study investigates Expandable Business Reporting Language on the transparency of financial information in companies listed in the Tehran Stock Exchange. The difference between this research and the pervious researches done in Iran is the exclusion of qualitative research and conducting quantitative research. The research sample consists of 158 companies for the eight-year period (2010-2016). The research method is applied in terms of purpose and is correlational in terms of investigating the relationship between variables. Panel data were analyzed by using the multivariate regression. The results show that expandable commercial reporting language has a significant positive effect on transparency of financial information.
Applied Research in Financial Reporting
Audit Organization
2345-3125
8
v.
1
no.
2019
147
171
https://www.arfr.ir/article_93105_96202b26a28250f9c3c91e629a4d0de3.pdf
The relationship between financial statements comparability and stock price crash risk with an emphasis on the role of information asymmetry
Younes
Badavar Nahandi
Department of Accounting, Faculty of Management, Economy and Accounting,Tabriz branch, Islamic Azad University, Tabriz, iran
author
Ghader
Babaei
Instructor, Department of accounting, Tabriz branch- Gowgan Center, Islamic Azad University, Tabriz, Iran
author
text
article
2019
per
Improvement in qualitative characteristic of comparability in the financial statements enables users to identify similarities and differences in the economic events across firms over the time and optimally allocate their resources. The main aim of this study is determining the relationship between financial statements comparability and stock price crash risk with an emphasis on the role of information asymmetry in companies listed on Tehran Stock Exchange (TSE) using a statistical sample of 132 firms (1320 observation) from 2006 to 2015. In this study, financial statements comparability was evaluated following De Franco et al (2011) empirical methodology, and the stock price crash risk was measured through the Hutton et al (2009) Model. In order to test the research hypotheses of this study, logistic regression has been used. The results of this study show that the stock price crash risk significantly decreases by enhancing financial statements comparability, and also this negative relation is more intense for firms with high information asymmetry condition.
Applied Research in Financial Reporting
Audit Organization
2345-3125
8
v.
1
no.
2019
173
206
https://www.arfr.ir/article_93106_4d2997ec253a1f69681fe1b36e770a1f.pdf