Investigate the audit fee stickiness and the impact of tax risk on it

Document Type : Research Paper

Authors

1 Ph.D Student of Accounting, Kish International Branch, Islamic Azad University, Kish Island, Iran.

2 Professor of Accounting, Tehran Science and Research Branch, Islamic Azad Universit,Tehram,Iran.

3 Associate Professor of Accounting, Tehran Science and Research Branch, Islamic Azad Universit, Tehram,Iran.

4 assistant professor of Accounting, Tehran Science and Research Branch, Islamic Azad Universit,Tehram,Iran.

Abstract

Agency problems, as a result of a conflict of interest between managers and shareholders is created. The audit efficient way to limit the powers of the managers are in contractual relations.The Purpose of this study was to evaluate the Stickiness of audit fees(Audit cost asymmetry), adjustments related to differences in the long-term impact of the increase or decrease in the risk of diversion of tax audit fees are fees from the standard model. For this purpose, data from 140 Tehran Stock Exchange members for the period of 1386 to 1394 have been used. Testing of research hypotheses is done using the regression model of combined data. The results show that audit fee stickiness does not follow a specific trend and varies over long periods of time. Also, tax avoidance, causes a deviation from the standard model of audit fees and wage increases.

Keywords

References

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Journal of Accounting Knowledge
Volume 8, Issue 3 - Serial Number 30
November 2017
Pages 167-201

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History

  • Receive Date: 25 June 2017
  • Revise Date: 17 August 2017
  • Accept Date: 19 August 2017

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