Pub Date : 2017-07-19DOI: 10.1504/IJAAPE.2017.10005538
Mohamed Khaled Eldaly, M. Abdel-Kader
This study aims to provide a better understanding of oversight on the audit profession in Egypt, including its motivations, objectives and its working approach. Further, it reaches a better understanding of the Egyptian Big 4 partners' perceptions of the new audit oversight board (AOB). Previous studies have frequently examined the audit oversight system in developed countries (the USA and UK in particular), but little is known on how the system works on developing countries. We believe that facing different problems and challenges demands that audit regulators in developing countries follow different approaches in order to improve the quality of their audit markets. Lack of skilled auditors, lack of transparency and public accountability, and a high level of corruption are the main problems facing the audit profession in Egypt (Awadallah, 2006; Wahdan et al., 2005a). Our findings suggest that establishing an AOB in Egypt has been motivated by the need to attract foreign investments and follow the global trend of auditing in developed countries. A number of legal changes are needed in order to improve the AOB's efficiency.
{"title":"An independent audit oversight system in a non-developed market: the case of Egypt","authors":"Mohamed Khaled Eldaly, M. Abdel-Kader","doi":"10.1504/IJAAPE.2017.10005538","DOIUrl":"https://doi.org/10.1504/IJAAPE.2017.10005538","url":null,"abstract":"This study aims to provide a better understanding of oversight on the audit profession in Egypt, including its motivations, objectives and its working approach. Further, it reaches a better understanding of the Egyptian Big 4 partners' perceptions of the new audit oversight board (AOB). Previous studies have frequently examined the audit oversight system in developed countries (the USA and UK in particular), but little is known on how the system works on developing countries. We believe that facing different problems and challenges demands that audit regulators in developing countries follow different approaches in order to improve the quality of their audit markets. Lack of skilled auditors, lack of transparency and public accountability, and a high level of corruption are the main problems facing the audit profession in Egypt (Awadallah, 2006; Wahdan et al., 2005a). Our findings suggest that establishing an AOB in Egypt has been motivated by the need to attract foreign investments and follow the global trend of auditing in developed countries. A number of legal changes are needed in order to improve the AOB's efficiency.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2017-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49012134","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-07-19DOI: 10.1504/IJAAPE.2017.10005537
J. Siekkinen
This paper examines whether audit quality and auditor independence have an impact on the information quality of fair values. It is assumed that higher audit quality and higher auditor independence decrease the incentives for managerial opportunism, thereby increasing investors' trust in book values. By analysing financial firms from 28 European countries, this study finds evidence that non-audit services have a positive association with the value relevance of Level 3 fair value assets. Furthermore, the more important the client is to the auditor, the lower is the value relevance of fair value estimates (Level 3). The association between a Big 4 auditor and the information quality of fair value estimates depends on the legal traditions in the firm's home country. The association is positive or non-existent in Northern and Western European countries and negative in Southern and Eastern European countries.
{"title":"Audit quality and the value relevance of fair values","authors":"J. Siekkinen","doi":"10.1504/IJAAPE.2017.10005537","DOIUrl":"https://doi.org/10.1504/IJAAPE.2017.10005537","url":null,"abstract":"This paper examines whether audit quality and auditor independence have an impact on the information quality of fair values. It is assumed that higher audit quality and higher auditor independence decrease the incentives for managerial opportunism, thereby increasing investors' trust in book values. By analysing financial firms from 28 European countries, this study finds evidence that non-audit services have a positive association with the value relevance of Level 3 fair value assets. Furthermore, the more important the client is to the auditor, the lower is the value relevance of fair value estimates (Level 3). The association between a Big 4 auditor and the information quality of fair value estimates depends on the legal traditions in the firm's home country. The association is positive or non-existent in Northern and Western European countries and negative in Southern and Eastern European countries.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2017-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45667393","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-07-19DOI: 10.1504/IJAAPE.2017.10005540
Maqsood Iqbal Qureshi
This study, using a valuation model and a sample of UK firms for the period between 1998 and 2003, empirically investigates whether the market attaches different values to investments in goodwill (GW), research and development (RD) and advertising (AD) by firms in different sectors, of different sizes, and with different performances. The research findings indicate that the market attaches different values to investments in GW, RD and AD by firms in different sectors (manufacturing and non-manufacturing), of different sizes (large and small firms) and with different performances (profit-making and loss-making firms). Our results provide evidence that both RD and AD are valued almost equally for manufacturing and non-manufacturing and profit making and loss-making firms. While the market assigns more value to non-manufacturing and profit making firms' goodwill. Our results also suggest that goodwill, R%D, and advertising are likely to be more effective for larger firms. Overall, these results should also interest analysts and creditors seeking to evaluate firms' intangible investments, professionals engaged in designing disclosure strategies, and academics exploring issues related to intangibles.
{"title":"The value relevance of intangibles: some evidence on industry sector, firm performance and size effects","authors":"Maqsood Iqbal Qureshi","doi":"10.1504/IJAAPE.2017.10005540","DOIUrl":"https://doi.org/10.1504/IJAAPE.2017.10005540","url":null,"abstract":"This study, using a valuation model and a sample of UK firms for the period between 1998 and 2003, empirically investigates whether the market attaches different values to investments in goodwill (GW), research and development (RD) and advertising (AD) by firms in different sectors, of different sizes, and with different performances. The research findings indicate that the market attaches different values to investments in GW, RD and AD by firms in different sectors (manufacturing and non-manufacturing), of different sizes (large and small firms) and with different performances (profit-making and loss-making firms). Our results provide evidence that both RD and AD are valued almost equally for manufacturing and non-manufacturing and profit making and loss-making firms. While the market assigns more value to non-manufacturing and profit making firms' goodwill. Our results also suggest that goodwill, R%D, and advertising are likely to be more effective for larger firms. Overall, these results should also interest analysts and creditors seeking to evaluate firms' intangible investments, professionals engaged in designing disclosure strategies, and academics exploring issues related to intangibles.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2017-07-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44846673","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-03-21DOI: 10.1504/IJAAPE.2017.10003437
J. O. Imoniana, Sergio Ricardo Leandro Dias
The purpose of this paper is to investigate the interference of the organisational culture with the internal audit function (IAF) of financial institutions in Brazil. Ten internal auditors from ten different banks based in Sao Paulo answered a cultural diagnostic questionnaire and were interviewed about how they perceived cultural interference with their functions. Data were analysed with the support of NVivo application and electronic spreadsheets. We found that the interference of the organisational culture with internal auditor's work takes place mainly through an 'image', a symbolic representation which contains the values and the expectations the organisation has concerning the way internal auditors must act. Moreover, organisations culture mainly affects the IAF in its planning process, when audit objects are chosen, and in its effectiveness, that is, the implementation of audit recommendations.
{"title":"The interference of the organisational culture with the internal audit function","authors":"J. O. Imoniana, Sergio Ricardo Leandro Dias","doi":"10.1504/IJAAPE.2017.10003437","DOIUrl":"https://doi.org/10.1504/IJAAPE.2017.10003437","url":null,"abstract":"The purpose of this paper is to investigate the interference of the organisational culture with the internal audit function (IAF) of financial institutions in Brazil. Ten internal auditors from ten different banks based in Sao Paulo answered a cultural diagnostic questionnaire and were interviewed about how they perceived cultural interference with their functions. Data were analysed with the support of NVivo application and electronic spreadsheets. We found that the interference of the organisational culture with internal auditor's work takes place mainly through an 'image', a symbolic representation which contains the values and the expectations the organisation has concerning the way internal auditors must act. Moreover, organisations culture mainly affects the IAF in its planning process, when audit objects are chosen, and in its effectiveness, that is, the implementation of audit recommendations.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2017-03-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43489659","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-03-21DOI: 10.1504/IJAAPE.2017.083025
Yasser Barghathi, D. Collison, Louise Crawford
The issue of earnings management has continued to be problematic in the financial reporting context. It has proved to be an important topic that concerns a wide range of stakeholders, including regulators, investors and preparers. The objective of this paper is to examine the perceptions of different stakeholders with regard to the financial reporting quality of Libyan commercial banks (LCBs) by addressing the issue of earnings management. The paper adopts a qualitative approach in order to investigate the topic of earnings management. It considers motives for, and techniques of, earnings management as well as the role and potential role for accounting standards and improved corporate governance in addressing the issue. The paper reports on 28 semi-structured interviews with different stakeholders of LCBs. It is found that financial reporting quality is perceived to be impaired as a result of earnings management. It also provides prima facie evidence of some fraudulent activity in the management of earnings. IFRS/IAS as well as a sound corporate governance system is perceived to have an important potential role in improving financial reporting quality. Some confusion and ambiguity in the understanding of the term earnings management was also identified.
{"title":"Earnings management in Libyan commercial banks: perceptions of stakeholders.","authors":"Yasser Barghathi, D. Collison, Louise Crawford","doi":"10.1504/IJAAPE.2017.083025","DOIUrl":"https://doi.org/10.1504/IJAAPE.2017.083025","url":null,"abstract":"The issue of earnings management has continued to be problematic in the financial reporting context. It has proved to be an important topic that concerns a wide range of stakeholders, including regulators, investors and preparers. The objective of this paper is to examine the perceptions of different stakeholders with regard to the financial reporting quality of Libyan commercial banks (LCBs) by addressing the issue of earnings management. The paper adopts a qualitative approach in order to investigate the topic of earnings management. It considers motives for, and techniques of, earnings management as well as the role and potential role for accounting standards and improved corporate governance in addressing the issue. The paper reports on 28 semi-structured interviews with different stakeholders of LCBs. It is found that financial reporting quality is perceived to be impaired as a result of earnings management. It also provides prima facie evidence of some fraudulent activity in the management of earnings. IFRS/IAS as well as a sound corporate governance system is perceived to have an important potential role in improving financial reporting quality. Some confusion and ambiguity in the understanding of the term earnings management was also identified.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2017-03-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJAAPE.2017.083025","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44873561","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-03-21DOI: 10.1504/IJAAPE.2017.10003442
Dennis M. O'reilly, J. Reisch, R. Leitch
In this study we experimentally test whether experienced auditors display a preference for confirmatory evidence when performing a routine part of a financial statement audit. We theorise that information auditors receive early during an audit leads them to form an initial belief about the correctness of an account balance. Subsequently, auditors may bias their evidence choices in a way that confirms their initial belief. We conducted a 2 × 2 between-subjects experiment with 97 experienced auditors. We manipulated whether early information came from a client's CFO or a firm partner and whether or not it supported the account balance as currently stated. We found that auditors selected more confirmatory evidence after receiving positive information from an audit partner compared to receiving the same information from a client's CFO. We found that experienced auditors selected more confirmatory evidence when the CFO provided negative information relative to when the CFO provided positive information.
{"title":"Do experienced auditors have a bias for confirmatory audit evidence","authors":"Dennis M. O'reilly, J. Reisch, R. Leitch","doi":"10.1504/IJAAPE.2017.10003442","DOIUrl":"https://doi.org/10.1504/IJAAPE.2017.10003442","url":null,"abstract":"In this study we experimentally test whether experienced auditors display a preference for confirmatory evidence when performing a routine part of a financial statement audit. We theorise that information auditors receive early during an audit leads them to form an initial belief about the correctness of an account balance. Subsequently, auditors may bias their evidence choices in a way that confirms their initial belief. We conducted a 2 × 2 between-subjects experiment with 97 experienced auditors. We manipulated whether early information came from a client's CFO or a firm partner and whether or not it supported the account balance as currently stated. We found that auditors selected more confirmatory evidence after receiving positive information from an audit partner compared to receiving the same information from a client's CFO. We found that experienced auditors selected more confirmatory evidence when the CFO provided negative information relative to when the CFO provided positive information.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2017-03-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47716676","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-01-31DOI: 10.1504/IJAAPE.2017.10002694
R. Mishra, S. Kapil
This paper aims to review the theories of corporate governance for understanding the theoretical basis of corporate governance mechanisms. Major theoretical studies on corporate governance, including studies done in emerging economies, are included in the review. The paper looks at corporate governance theories from value creation point of view. It is observed that the two perspectives of corporate governance, i.e., shareholder and stakeholder perspectives, are not in contrast to each other but are pointing towards the same goal, i.e., value creation. However, one points towards value creation for shareholders and the other points towards creation of societal value. While reviewing theoretical underpinnings and assumptions for corporate governance perspectives, due consideration has been given to the development of corporate governance mechanism based on various existing theories. A theoretical framework for understanding the relationship between corporate governance mechanism and corporate performance has been proposed. Emerging challenges for corporate governance theories have also been indicated. This being a review paper, one of the major limitations is an unintentional omission of some literature because of non-availability or non-reachability. Literature that would have been present in languages other than English could also not been included in the review.
{"title":"Study on theories and mechanisms of corporate governance","authors":"R. Mishra, S. Kapil","doi":"10.1504/IJAAPE.2017.10002694","DOIUrl":"https://doi.org/10.1504/IJAAPE.2017.10002694","url":null,"abstract":"This paper aims to review the theories of corporate governance for understanding the theoretical basis of corporate governance mechanisms. Major theoretical studies on corporate governance, including studies done in emerging economies, are included in the review. The paper looks at corporate governance theories from value creation point of view. It is observed that the two perspectives of corporate governance, i.e., shareholder and stakeholder perspectives, are not in contrast to each other but are pointing towards the same goal, i.e., value creation. However, one points towards value creation for shareholders and the other points towards creation of societal value. While reviewing theoretical underpinnings and assumptions for corporate governance perspectives, due consideration has been given to the development of corporate governance mechanism based on various existing theories. A theoretical framework for understanding the relationship between corporate governance mechanism and corporate performance has been proposed. Emerging challenges for corporate governance theories have also been indicated. This being a review paper, one of the major limitations is an unintentional omission of some literature because of non-availability or non-reachability. Literature that would have been present in languages other than English could also not been included in the review.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2017-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41972884","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-01-31DOI: 10.1504/IJAAPE.2017.081803
Sharad Asthana, S. Balsam
Accounting faculty in the USA are rewarded for publishing, with the reward increasing with journal quality. We estimate the increase in annual salary for a top tier publication to be $5,609, with the increase varying across ranks - from $2,008 for an endowed professor to $9,452 for an assistant professor. As these are increases in base salary, under reasonable assumptions for longevity and discount rate, the present value of a top tier publication exceeds $145,000 for an assistant professor. We also document that the reward varies systematically across schools and over time. While we find significantly greater average salaries at doctoral granting institutions, we find the reward per publication is greater at non-doctoral granting institutions. We also find that more recent publications are valued more highly, and that the payoff for a top tier publication has increased over time, while that for lower tier publications has decreased.
{"title":"The rewards for publishing in accounting in the USA","authors":"Sharad Asthana, S. Balsam","doi":"10.1504/IJAAPE.2017.081803","DOIUrl":"https://doi.org/10.1504/IJAAPE.2017.081803","url":null,"abstract":"Accounting faculty in the USA are rewarded for publishing, with the reward increasing with journal quality. We estimate the increase in annual salary for a top tier publication to be $5,609, with the increase varying across ranks - from $2,008 for an endowed professor to $9,452 for an assistant professor. As these are increases in base salary, under reasonable assumptions for longevity and discount rate, the present value of a top tier publication exceeds $145,000 for an assistant professor. We also document that the reward varies systematically across schools and over time. While we find significantly greater average salaries at doctoral granting institutions, we find the reward per publication is greater at non-doctoral granting institutions. We also find that more recent publications are valued more highly, and that the payoff for a top tier publication has increased over time, while that for lower tier publications has decreased.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2017-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJAAPE.2017.081803","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44992949","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-01-31DOI: 10.1504/IJAAPE.2017.10002698
Ghassan H. Mardini, Yasean A. Tahat
The primary objective of this research is to examine the current state of audit selection and rotation practised by Qatari listed firms. A questionnaire survey has been used. A number of findings have emerged from the current investigation. First, the results indicate that a number of criteria appear to be used by listed companies in Qatar for such decisions: namely, accuracy, completeness, appropriateness, adequacy and multi-function ability. Indeed, the findings reveal that audit firm expertise, reputation and service quality are the most important factors employed by Qatari listed firms when choosing/changing an audit firm. Second, the study finds that audit rotation can enhance both audit quality and investors' confidence in the published financial statements. Finally, an industrial analysis of audit selection and rotation criteria shows that both audit firm expertise and service quality are statistically different among sectors examined. The findings of this research provide a great deal of insight for policy-makers, academicians and professionals about audit rotation in Qatar.
{"title":"An empirical evidence on audit selection and audit rotation: the case of Qatari listed companies","authors":"Ghassan H. Mardini, Yasean A. Tahat","doi":"10.1504/IJAAPE.2017.10002698","DOIUrl":"https://doi.org/10.1504/IJAAPE.2017.10002698","url":null,"abstract":"The primary objective of this research is to examine the current state of audit selection and rotation practised by Qatari listed firms. A questionnaire survey has been used. A number of findings have emerged from the current investigation. First, the results indicate that a number of criteria appear to be used by listed companies in Qatar for such decisions: namely, accuracy, completeness, appropriateness, adequacy and multi-function ability. Indeed, the findings reveal that audit firm expertise, reputation and service quality are the most important factors employed by Qatari listed firms when choosing/changing an audit firm. Second, the study finds that audit rotation can enhance both audit quality and investors' confidence in the published financial statements. Finally, an industrial analysis of audit selection and rotation criteria shows that both audit firm expertise and service quality are statistically different among sectors examined. The findings of this research provide a great deal of insight for policy-makers, academicians and professionals about audit rotation in Qatar.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2017-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43240449","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2017-01-31DOI: 10.1504/IJAAPE.2017.10002695
M. Salehi, Shayan Farhangdoust, Adineh Vahidnia
The aim of this paper is to provide empirical evidence for the impact of abnormal audit fees on future restatements. We examine whether firms that restate their financial statements have higher levels of total audit fees than their counterparts. In this regard, the authors test their hypothesis by performing panel data analysis on a sample of 936 firm-year observations from companies listed on the Tehran Stock Exchange during 2009-2014. We find that there is a negative relationship between the two; specifically, abnormal audit fees are lower in the periods leading up to the occurrence or announcement of the restatement (i.e., the next fiscal year).
{"title":"Abnormal audit fees and future restatements: evidence from Tehran Stock Exchange","authors":"M. Salehi, Shayan Farhangdoust, Adineh Vahidnia","doi":"10.1504/IJAAPE.2017.10002695","DOIUrl":"https://doi.org/10.1504/IJAAPE.2017.10002695","url":null,"abstract":"The aim of this paper is to provide empirical evidence for the impact of abnormal audit fees on future restatements. We examine whether firms that restate their financial statements have higher levels of total audit fees than their counterparts. In this regard, the authors test their hypothesis by performing panel data analysis on a sample of 936 firm-year observations from companies listed on the Tehran Stock Exchange during 2009-2014. We find that there is a negative relationship between the two; specifically, abnormal audit fees are lower in the periods leading up to the occurrence or announcement of the restatement (i.e., the next fiscal year).","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2017-01-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42034006","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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