Effects of Search Period for Successor Auditor on Initial Audit Fees and Type of Successor Auditor

Document Type : Research Paper

Author

Instructor, Accounting, University of Bojnord, Bojnord, Iran.

Abstract

The quality of auditing and financial reporting, which is taken as the reliance themes for many stakeholders and for making economic decisions, can be influenced by the type of auditor and auditing engagement, and by the period of auditing work. The purpose of this study is to examine the effects of search period for successor auditor on initial audit fee and on the type of successor auditor, regarding the effects of resignation or dismissal of previous auditor measured as moderator variable. In this study, the statistical sample consists of 63 companies, selected from the Tehran Stock Exchange for the years 2011-2015 (5 years).
The results showed that the search period for successor auditor has a significant and positive effect on initial audit fees, taking size of company as controlling variable. Also, the results verified a significant and negative relationship between search period and type of successor auditor. Although, the resignation or dismissal variable as moderator variable reduces the power of this negative relationship, lacks significant effects in that relationship. Furthermore, the results showed that type of successor auditor has a significant and negative relationship with initial audit fees, regarding size of company as controlling variable.

Keywords

References

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History

  • Receive Date: 11 April 2017
  • Revise Date: 25 October 2017
  • Accept Date: 28 January 2018

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