Iranian Journal of Accounting, Auditing and Finance
Volume:4 Issue: 1, Winter 2020

Using meta-analysis, we investigate the combined effect of the most extended independent variables in this literature line. The meta-analysis obtained results in a deeper understanding of the anomalies, mixed results, and gaps in audit fees research. To achieve the desired objective, meta-analysis is used. The study's statistical population reviewed the most relevant studies on this subject published in Iranian and international journals for the 2000-2016 period. The effect of independent variables on audit fees is studied. A total of 162 studies, 146 published in international journals, and 16 in Iranian journals are considered the study sample. Our findings suggest that some independent variables have consistent results, several show no precise rhythm to the results, and some others only indicate significant results in specific periods or certain countries; variables of audit quality, accounting firm size, industry specialization of the firm, accounting firm tenure and client size are positively correlated with audit fees. However, we conclude that there is no significant relationship between the risk of client firm and audit fees. The current study is almost the first study conducted on the study's subject, and the results may help audit the profession.

This paper aims to assess the relationship between management ability and audit fees by considering firm credit and auditor’s dependency during the financial crisis. Despite the presence of extensive studies on determining factors in audit fees, most of the studies have been concentrated on determining factors at the firm level, and little evidence is available to auditors on the information content of special managerial features. This paper aims to examine the relationship between managerial abilities and audit fees by considering firms' financial crisis conditions. In this paper, management abilities are considered to form three firm size indices, the firm's sales share in the market and cash. Moreover, the standard deviation of 3-year sales is used for firm credit, and an abnormal audit fee is employed for calculating auditor dependency. For this purpose, a total number of 91 listed firms on the Tehran Stock Exchange is evaluated for 6 years between 2014 and 2019. The panel regression model is used for hypothesis testing, and Chow and Hausman's tests are used for selecting the appropriate model-fitting method. The VIF test is used for analyzing linearity among explanatory variables. The obtained results indicate that financial crisis conditions contribute to the relationship between management abilities (based on firm size measurement) and audit fees. Further, the results indicate the negative impact of firm credit on the relationship between audit fee and management ability (based on cash). According to the results, audit fee dependency on the relationship between management ability (based on measurement, the firm's sales share, and cash) and audit fee is positive. Moreover, the results suggest that financial crisis conditions contribute to firm credit effectiveness in the relationship between management ability and audit fees. In past research, some factors affecting the auditor fee are debts, management ability, and auditor independence. In this paper, we contribute to the financial crisis as a variable that influences some of these relationships. And we show that relationships make sense by considering this variable.

The present study is concerned about the impact of intangible assets and intellectual capital on audit risk and fees in listed firms on the Tehran Stock Exchange. Regression estimation with panel data method is used to estimate the model. This study's statistical sample comprises 128 listed firms on the Tehran Stock Exchange during 2012-2017. The study results show a positive and significant relationship between the firm's audit fee and intangible assets ratio. The relationship between audit fees and intellectual capital is negative and significant. Moreover, results indicate that a positive relationship exists between audit fee and intangible assets ratio for firms with a high market rate to book value ratio. A positive and significant relationship is evident between audit risk and intangible assets of the firm. Finally, a negative and significant relationship is also found between audit risk and intellectual capital. The current study may fill the gap in the study, and the study results give direct insight to policymakers.

The present study is concerned about the relationship between corporate governance and the volatility of profit and loss components in companies listed on the Tehran Stock Exchange. This paper's statistical population includes 129 listed companies on the Tehran Stock Exchange during 2012-2017. For testing the study's hypotheses, the multivariate linear regression is used based on the panel data. The study's findings show no significant relationship between institutional shareholders’ ownership percentage and profit volatility and loss. Moreover, the results indicate a negative and significant relationship between the percentage of major shareholders and volatility of profit and loss. The study's findings suggest a positive and significant relationship between board independence, financial expertise, and CEO education, and volatility of profit and loss. This paper fills the gap by presenting logical reasoning and empirical evidence on the Tehran Stock Exchange and further develops the conducted studies on corporate governance.

The present study examines the impact of managerial remuneration and its severe cut on audit fees by considering the moderating role of audit quality in companies listed on the Tehran stock exchange. To measure audit quality, three criteria were used, including auditor size, tenure, and expertise. The statistical population includes 92 firms, and the study was done from 2007 to 2016. Testing the hypotheses is conducted in Stata14 software through panel data with the fixed-effect method. The results showed that auditor size and tenure mitigate the relationship between managerial remuneration and audit fees. In return, the results also suggested that auditor expertise does not affect the relationship between managerial remuneration and audit fees. The obtained results also indicated that audit quality criteria such as size, tenure, and expertise do not affect the relationship between severe managerial remuneration cut and audit fees. In other words, audit quality does not moderate the positive relationship between severe managerial remuneration cut and audit fees.

Macro accounting introduces the cost stickiness behavior of all companies as aggregate cost stickiness. This theory states that since the periods of aggregate cost stickiness are more likely to be reserved for resources by companies facing with fall in sales (declining sales), periods of this sequence are associated with low unemployment. Every certain unemployment rate creates a certain increase in wages because wage costs represent General, administrative and sales costs. Based on this, the present study has applied macro accounting information to forecast the unemployment rate. The statistical population of this study includes all companies listed on the TSE. Macro accounting emphasizes economists' view of seasonal accounting. Therefore, data collection every quarter, and observations include 44 times (2008: Q1-2018: Q4). The method of model VAR. Also, to study the forecast's accuracy, the methods of the mean absolute value of error, mean of square error, and criterion of the average percentage of the absolute value of error have been used. Evidence suggests that aggregate cost stickiness forecast changes in the unemployment rate in the future. Reducing the cost stickiness by 1% reduces the unemployment rate by 0/34% in the next quarter. Another result of the research is the accuracy of the regression pattern's forecast in the short term

The present study is concerned about the relationship between auditors' work stress with audit quality, internal control weakness, and the impact of being a primary auditor on the relationship between auditors' work stress and audit quality in listed companies on the Tehran Stock Exchange. The study's statistical sample involves 111 listed firms on the Tehran Stock Exchange from 2012 to 2018, and the Stata Software is used for data analysis. The findings argue thatauditors' stressful work environment is likely to deteriorate the quality of audit services. Moreover, we articulate that being the primary auditor plays a moderating role in the association between audit work stress and audit quality. Finally, the results show that job stress does not let auditors understand internal controls to identify material weaknesses and recommend efficient solutions. We expect this study to contribute to practical issues on auditors' work stress and provide some scientific evidence for improving the supervisory policies. We hope this study proposes a quantitative method to contribute to work stress decrease and the system for dealing with the stress reaction.