Audit Fees and Non-Compliance with Anti-Money Laundering Law

Document Type : Research Paper

Authors

1 Associate Professor of Accounting, University of Tehran, Tehran, Iran.

2 Assistant Professor of Accounting, University of Tehran, Tehran, Iran.

3 M.A. Student in Accounting, University of Tehran, Tehran, Iran.

10.22103/jak.2019.13429.2901

Abstract

Object: Money laundering is one of the important issues that auditors should pay attention to in their investigations. Money laundering is a global issue and has devastating effects on corporate performance and auditing, and hence, on the economy. The purpose of this study was to investigate the effects of non-compliance with anti-money laundering law on audit fee.
Method: This research is a quantitative research from the perspective of implementation process, meaning that an objective approach is taken for data collection and quantitative analysis. Hypothesis testing was performed, using regression model and statistical sample of 78 companies listed in the Tehran Stock Exchange during the period 2013-2017.
Results: The findings of this study, in line with the literature in their field, showed that there is a positive and significant relationship between non-compliance with anti-money laundering law and audit fees.
Conclusion: According to the results of this study, non-compliance with the anti-money laundering law increases the clients’ business risk and audit risk. Therefore, auditors increase their efforts that increase audit costs, resulting in requesting additional audit fees.

Keywords

References

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History

  • Receive Date: 02 February 2019
  • Revise Date: 12 June 2019
  • Accept Date: 04 August 2019

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