The efficiency effect of audit firms on implementation of effective risk-based auditing

The most important role of auditors for capital market activists and investors is assuring on information that presented by managers. The audited financial statements by high quality audit firms are more reliable and reflects the true value of the company, experimental results of various investigations show that big audit companies present high quality audit services and more financial assurance about the financial statements to the investor. The purpose of this research is surveying effects of factors related to efficiency of audit firms such as amount of revenue, employees, and hours spent by the Iranian audit firms on implementation of risked based auditing. This research study the relationship between the revenue, number of employees, number of audit firm’s projects and hours spent by the audit firms by implementing the risk-based auditing in active audit firms that are members of AICPA between the 2014 and 2016 The needed information extracted from Iranian association of certified public accountant. Independent variables of this investigation included revenue, number of employees, number of audit firm’s projects and hours spent and dependent variable was implementation of risk-based auditing that mark of part 4 in quality control checklist of Iranian association of certified public accountants (IACPA) is consider as criteria of implementing the risk-based auditing. In accordance with mentioned independent variables 4 research hypothesis were determined and tested through multivariate regression. The results show that there is a meaningful and positive relationship between the independent and dependent variables of this research, which means that by increasing revenue, number of employees, number of audit firm’s projects and time spent on auditing, We can expect that implementation of the audit to be more desirable which will be more effective on managing of audit projects implementation,and consequently because of focusing on high-risk areas the audit report will have sufficient effectiveness.