Accounting
Niyi Solomon Awotomilusi
Abstract
This study empirically examined time pressure influence on audit quality of audit firms in Abuja, Nigeria. Specifically, the study examined the effect of unreasonable deadlines for reporting on audit quality; effect of intense competition among audit partners on audit quality and the effect of work stress ...
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This study empirically examined time pressure influence on audit quality of audit firms in Abuja, Nigeria. Specifically, the study examined the effect of unreasonable deadlines for reporting on audit quality; effect of intense competition among audit partners on audit quality and the effect of work stress on the audit quality. Primary data were gathered through the questionnaire administered on principal partners of selected audit firms in Abuja, Nigeria. The data were analysed using descriptive and inferential statistics. The result of the study shows that unreasonable deadlines and intense competition among audit partners have significant effects on the quality of audit reporting. In other vein, work stress of the auditors was found to have no significant effect on audit quality in Nigeria. The study recommends that unreasonable deadlines should not be set for auditors, auditors should be encouraged to involve in moderate competition and work stress should not be allowed to influence their audit reports.
Moslem Tahmasbi; Hesam Rahmani; Mohammad Zamani Bakhtiarvand
Abstract
In this study, the effect of audit quality on the market value of cash holdings was investigated. The company’s auditor expertise and tenure were considered as measures of audit quality. The regression model developed by Faulkender and Wang (2006) was applied to estimate the market value of cash ...
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In this study, the effect of audit quality on the market value of cash holdings was investigated. The company’s auditor expertise and tenure were considered as measures of audit quality. The regression model developed by Faulkender and Wang (2006) was applied to estimate the market value of cash holdings.Target sample includes 175 listed companies in the Tehran Stock Exchange during 2008-2014 (1387-1393Iranian calendars). In this study, it was supposed that audit quality affects the market value of cash holdings. The hypotheses were examined using panel data and a multivariate regression model of generalized least squares. The results indicated that the company’s auditor expertise affects the market value of cash holdings (the positive and significant relationship statistically). However, tenure does not affect the market value of cash holdings.
Saeed Pakdelan; Alireza Azarberahman; Jalal Azarberahman; Ebrahim Timori
Volume 6, Issue 12 , December 2019, , Pages 891-905
Abstract
In the financial literature, risk-taking and investment-related decisions are among the most important decisions for companies that make optimal decisions in these two areas, optimally allocating resources and directing financial resources to economic investments and profitable projects for value creation. ...
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In the financial literature, risk-taking and investment-related decisions are among the most important decisions for companies that make optimal decisions in these two areas, optimally allocating resources and directing financial resources to economic investments and profitable projects for value creation. The purpose of the research is to investigate the relationship between audit quality and risk taking on value creation in firms listed in Tehran Stock Exchange (TSE). The research used five components of auditor's specialist, tenure, audit size, ownership concentration, and board of director’s independence to evaluate audit quality. The statistical population of the study includes the companies listed in TSE. Using a screening method, 610 firm-year data were selected for a 5-year period (2013-2017). This research is based on panel data and multivariate regression method. The research findings show that among these five components as well as the risk factor, only the variables of auditor tenure and ownership concentration have a significant effect on corporate value creation. The originality of the results of the research contributes to the auditing and capital market in TSE.
Mohammad Kasyaani; Massoud Dehghani; Roghayeh Eyvaz Naveh Si
Volume 5, Issue 12 , December 2018, , Pages 986-1005
Abstract
The purpose of this study was to investigate the effect of audit quality and debt financing on earnings management. In this research, the quality of audit and debt financing is considered as an independent variable and profit management as an associated variable. The criteria for measuring the audit ...
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The purpose of this study was to investigate the effect of audit quality and debt financing on earnings management. In this research, the quality of audit and debt financing is considered as an independent variable and profit management as an associated variable. The criteria for measuring the audit quality of the auditor's tenure, the size of the audit firm, the auditor's specialty, and the independence of the auditor are to measure the financing of both short-term financing (short-term debt to total assets) and long-term debt financing (Long-term debt to total assets). Also, for measuring earnings management as a dependent variable, the modified Jones model was used. The spatial domain of the research includes companies admitted to the Tehran Stock Exchange and the realm of time from the beginning of 2010 to 2016, totally due to the restrictions imposed, 134 companies were selected as samples. Testing the research hypotheses using aggregated least squares regression showed that none of the audit quality criteria studied in this research and debt financing had any effect on the management of profit.
Maya Ayu Safitri; Alwan Sri Kustono; Muhammad Miqdad
Volume 5, Issue 9 , September 2018, , Pages 738-750
Abstract
Earnings management (EM) is the choice of accounting policy by a manager to achieve multiple goals. EM activity can be divided into two types: accrual manipulation activity and real manipulation activity. However, both of these have a major difference: the accrual manipulation does not affect cash flow, ...
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Earnings management (EM) is the choice of accounting policy by a manager to achieve multiple goals. EM activity can be divided into two types: accrual manipulation activity and real manipulation activity. However, both of these have a major difference: the accrual manipulation does not affect cash flow, whereas real manipulation affects cash flow. Whether misleading or not to the users of financial statements, good or bad for the practice, controversy arises when earnings management is associated with morals / ethics. EM practices are suspected to arise due to agency problems arising from a conflict of interest between the principal and the agent. In accordance with agency theory, the function of the independent auditor can reduce agency problems. A qualified auditor, trusted to provide trust to stakeholders about the performance of management. High-quality auditors are more likely to detect dubious accounting practices. Thus, in the context of research, audit quality is often regarded as an antecedent variable and a variable that can reduce the occurrence of EM practice. Furthermore, the practice of Accrual Earnings Management (AEM) and Real Earnings Management (REM) in some empirical results turns out to be a substitution.