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quarterly financial accounting journal 2019, 11(43): 27-46 Back to browse issues page
Economic Crisis and Audit Fees
Fakhroddin MohammadRezaei 1, Mahnaz Moosaee, Hamed Salahi
Abstract:   (706 Views)
Economic crisis generally increases firms’ bankruptcy and consequently audit risk. Hence, auditors are more likely to respond to this increased risk through increasing audit fees. However, in the lack of adequate empirical and theoretical evidence, the role of this macro-economic variable, economic crisis, is not clearly demonstrated on audit fees. Therefore, this study investigates the role of economic crisis on audit fees in Iran. Data were collected manually from annual financial statements of firms listed on Tehran Stock Exchange between 2007 and 2015 and contain 924 firm-year observations. Multivariate analysis reveal that audit fees is positively associated with economic crisis. In sensitivity tests to control the role of hyperinflationary economy of Iran, we have employed two additional tests through including “price index” and scaling all continuous variables by firms’ sales. The results of sensitively tests are consistent with the main findings and suggest that Iranian auditors respond to economic crisis with increasing their fees.
Keywords: Economic crisis, audit fees and audit risk
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Type of Study: Research | Subject: Special
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MohammadRezaei F, Moosaee M, Salahi H. Economic Crisis and Audit Fees. quarterly financial accounting journal. 2019; 11 (43) :27-46
URL: http://qfaj.ir/article-1-1881-en.html

year 11, Issue 43 (2019) Back to browse issues page
فصلنامه حسابداری مالی Quarterly Financial Accounting
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