International E-publication: Publish Projects, Dissertation, Theses, Books, Souvenir, Conference Proceeding with ISBN.  International E-Bulletin: Information/News regarding: Academics and Research

Effective Factors on Determination of Audit Fees in Iran

    ,

Author Affiliations

  • 1Sama Technical and Vocational Training College, Islamic Azad University, Qaemshahr Branch, Qaemshahr, IRAN
  • 2 Department of Accounting, Qaemshahr Branch, Islamic Azad University, Qaemshahr, IRAN

Res. J. Recent Sci., Volume 1, Issue (6), Pages 38-44, June,2 (2012)

Abstract

The aim of the study is to determine the effective factors on determination of audit fees in Iran. The theoretical framework was designed based on the literature and hypotheses for the study were formulated. The data was collected by distributing structured 50 items in Tehran stock exchange. Data collected were sorted out and keyed in into ARDL. The data were analyzed using descriptive and inferential statistics to answer the research questions. The result of the analyses showed that there was significant relationship between auditing feesand its predictors. Together the independent variables explained 90.2% of the variance in the dependent variables. The remaining 9.8% was due to unidentified variables. In relation to that, the study had contributed some knowledge about the understanding of auditing fees. For future research, it is recommended that other than the above variables might influence audit feesperhaps with a bigger samples and wider scope.

References

  1. Simunic D., The Pricing of Audit Services: Theory and Evidence, Journal of Accounting Research, 161-190 (1980)
  2. Bazerman M.H., Behavioral decision research, legislation, and society: Three cases, http://www.bepress.com, 2(1) (2007)
  3. Moizer P., Independence. In M.Sherer and S. Turley (Eds.), Current issue in auditing, London, UK: Paul Chapman Publishing, 55-69 (1997)
  4. Sutton M.H., Auditor independence: The challenge of fact and appearance Accounting horizons, 11(1) 86-91(1997)
  5. Bazerman M.H., Moore D.A., Tetlock P.E. and Tanlu L., Reports of solving the conflicts of interest in auditing are highly exaggerated, Academy of management review, 31(1) 1-7 (2006)
  6. DeAngelo L.E., Auditor independence, low balling and disclosure regulation, Journal of Accounting and Economics, 3(2), 113-127 (1981)
  7. Whisenant S., Sankaraguruswamy S. and Raghunandan K., Evidence on the joint determination of audit and non-audit fees, Journal of Accounting Research, 41(4), 721-744 (2003)
  8. Hay D., Knechel R. and Li V., Non-audit services and auditor independence: New Zealand evidence, Journal of Business Finance and Accounting, 33(5), 715-734 (2006)
  9. Wallace W., The Economic Role of the Audit in Free and Regulated Market: A Review, Research in Accounting Regulation, , 7-34 (1987)
  10. Cohen J.R. and Hanno D.M., Auditors Consideration of Corporate Governance and Management Cont Rol Philosophy in Preplanning and Planning Judgments, A Journal of Practice and Theory, 19(2) (2000)
  11. Tsui J.L., Jaggi B. and Gul F., CEO Domination, Growth opportunities and their impact on Audit Fees, Journal of Accounting, Auditing and Finance, 52, 189-208 (2001)
  12. Bedard J.C. and Johnstone K.M., Earnings Manipulation Risk, Corporate Governance Risk and Auditors Planning and Pricing Decisions, The Accounting Review, 79(2), 277-304 (2004)
  13. Hay D., Knechel R. and Ling H., Evidence on the impact of Internal Control and Corporate Governance on Audit Fees, International Journal of Auditing, 12(1), 9-24 (2008)
  14. Rahbari K.M., Sovereign status of listed companies in Tehran stock exchange and comparison with other countries, Master's thesis, School of Accounting and Management, University of Allame Tabatabaee(2006)
  15. Hassas Y.Y. and Alavi T.H., The relationship between Spend resources for internal audit and independent audit of expenses, Quarterly of Accounting Studies, 1(4), 72-82 (2004)
  16. Pesaran H.M., Shin Y. and Smith J.R., Bounds testing approaches to the analysis of relationships, Journal of Applied Econometrics, 16(3), 289–326 (2001)
  17. Pesaran H.M. and Shin Y., Autoregressive Distributed Lag Modeling Approach to Co-integration Analysis, Chapter 11, in: Storm, S., (ed), Econometric and Economic Theory in the 20th.Century: The Ragnar Frisch Centennial Symposium (Cambridge: Cambridge University Press) (1999)
  18. Engle R.F. and Granger W.J., Co-integration and error-correction: Representation, estimation and testing,Econometrica, 55(2), 251-276 (1987)
  19. Brown R.l., Durbin J. and Evans J.M., Techniques for Testing the Constancy of Regression Relations over Time,Journal of the Royal StatisticalSociety, 37(2), 149-192 (1975)
  20. Bahmani-Oskooee M., How stable is M2 money demand function in Japan? Japan and World Economy, 13(4), 455-461 (2001)
  21. Dickey D. and Fuller W.A., Distribution of the Estimators for time series regressios with a unit root, Journal of the American Statistical Association, 74(366), 427- 431 (1979)
  22. Perron P., Further evidence on breaking trend functions in macroeconomic variables, J. Econometrics, 80(2), 355-385 (1997)
  23. Mangang P.N., Health Beliefs and Perception of Wellbeing among the Lois of Thanga inManipur, India, Research Journal of Recent Sciences,1(4), 46-52 (2012)
  24. Nwajei G.E., Okwagi P., Nwajei R.I. and Obi-Iyeke G.E.,Analytical Assessment of Trace Elements in Soils, Tomato Leaves and Fruits in the Vicinity of Paint Industry, Nigeria, Research Journal of Recent Sciences,1(4) 22-26 (2012)
  25. Amanchi N.R. and Mohd M.H.,Ecophysiological and cytopathological impact of delfin insecticide (Bacillus thuringiensis) to a unicellular ciliate protozoan, Euplotes patella, Research Journal of Recent Sciences,1(4), 64-67 (2012)