The Effect of Audit Quality on the Audit Adjustments to Earnings
Purpose: This paper aims to investigate the role and impact of audited quality indicators on the amount of audited earnings corrections. Methodology: Three indicators, auditor tenure, auditor size, and auditor fees, were used to measure the audit quality. Research hypotheses based on collected data...
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| Format: | Article |
| Language: | fas |
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Ayandegan Institute of Higher Education, Tonekabon,
2020-08-01
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| Series: | مدیریت نوآوری و راهبردهای عملیاتی |
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| Online Access: | http://www.journal-imos.ir/article_125241_24b627600694b82d8fd3f4ddec64d9b9.pdf |
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| _version_ | 1832577831977091072 |
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| author | Seyed Reza Seyed Nezhad Fahim Samaneh Zamani |
| author_facet | Seyed Reza Seyed Nezhad Fahim Samaneh Zamani |
| author_sort | Seyed Reza Seyed Nezhad Fahim |
| collection | DOAJ |
| description | Purpose: This paper aims to investigate the role and impact of audited quality indicators on the amount of audited earnings corrections. Methodology: Three indicators, auditor tenure, auditor size, and auditor fees, were used to measure the audit quality. Research hypotheses based on collected data from 128 companies accepted in the Tehran Stock Exchange from 2013 to 2018 were tested using combined regression analysis. Findings: The test results showed a significant positive relationship between auditor tenure and auditor industry specialization with audit adjustments to earnings, but there is a negative and meaningless relationship between auditor fees, auditor size, and auditor rate with audit adjustments to earnings. To further analyze, the effect of audit quality on the downward audit adjustments to earnings was also examined. Evidence indicates a significant positive relationship between auditor tenure and auditor industry specialization with downward audit adjustments to earnings and a significant negative relationship between auditor size and auditor rate with downward audit adjustments to earnings. Originality/Value: In this research, five indicators of auditor tenure, auditor size, auditor rank, auditor specialization in industry, and auditor fee were used as criteria for audit quality. |
| format | Article |
| id | doaj-art-a3b07be79ddd4e1b8d205c8090cc7e8c |
| institution | Kabale University |
| issn | 2783-1345 2717-4581 |
| language | fas |
| publishDate | 2020-08-01 |
| publisher | Ayandegan Institute of Higher Education, Tonekabon, |
| record_format | Article |
| series | مدیریت نوآوری و راهبردهای عملیاتی |
| spelling | doaj-art-a3b07be79ddd4e1b8d205c8090cc7e8c2025-01-30T14:59:08ZfasAyandegan Institute of Higher Education, Tonekabon,مدیریت نوآوری و راهبردهای عملیاتی2783-13452717-45812020-08-011214015610.22105/imos.2021.270824.1025125241The Effect of Audit Quality on the Audit Adjustments to EarningsSeyed Reza Seyed Nezhad Fahim0Samaneh Zamani1Department of Accounting, Lahijan Branch, Islamic Azad University, Lahijan, Iran.Department of Accounting, University of Deylaman, Lahijan, IranPurpose: This paper aims to investigate the role and impact of audited quality indicators on the amount of audited earnings corrections. Methodology: Three indicators, auditor tenure, auditor size, and auditor fees, were used to measure the audit quality. Research hypotheses based on collected data from 128 companies accepted in the Tehran Stock Exchange from 2013 to 2018 were tested using combined regression analysis. Findings: The test results showed a significant positive relationship between auditor tenure and auditor industry specialization with audit adjustments to earnings, but there is a negative and meaningless relationship between auditor fees, auditor size, and auditor rate with audit adjustments to earnings. To further analyze, the effect of audit quality on the downward audit adjustments to earnings was also examined. Evidence indicates a significant positive relationship between auditor tenure and auditor industry specialization with downward audit adjustments to earnings and a significant negative relationship between auditor size and auditor rate with downward audit adjustments to earnings. Originality/Value: In this research, five indicators of auditor tenure, auditor size, auditor rank, auditor specialization in industry, and auditor fee were used as criteria for audit quality.http://www.journal-imos.ir/article_125241_24b627600694b82d8fd3f4ddec64d9b9.pdfaudit adjustments to earningsauditor sizeauditor feesauditor tenureaudit quality |
| spellingShingle | Seyed Reza Seyed Nezhad Fahim Samaneh Zamani The Effect of Audit Quality on the Audit Adjustments to Earnings مدیریت نوآوری و راهبردهای عملیاتی audit adjustments to earnings auditor size auditor fees auditor tenure audit quality |
| title | The Effect of Audit Quality on the Audit Adjustments to Earnings |
| title_full | The Effect of Audit Quality on the Audit Adjustments to Earnings |
| title_fullStr | The Effect of Audit Quality on the Audit Adjustments to Earnings |
| title_full_unstemmed | The Effect of Audit Quality on the Audit Adjustments to Earnings |
| title_short | The Effect of Audit Quality on the Audit Adjustments to Earnings |
| title_sort | effect of audit quality on the audit adjustments to earnings |
| topic | audit adjustments to earnings auditor size auditor fees auditor tenure audit quality |
| url | http://www.journal-imos.ir/article_125241_24b627600694b82d8fd3f4ddec64d9b9.pdf |
| work_keys_str_mv | AT seyedrezaseyednezhadfahim theeffectofauditqualityontheauditadjustmentstoearnings AT samanehzamani theeffectofauditqualityontheauditadjustmentstoearnings AT seyedrezaseyednezhadfahim effectofauditqualityontheauditadjustmentstoearnings AT samanehzamani effectofauditqualityontheauditadjustmentstoearnings |