A Study of Factors Affecting Readability of the Audit Report: A linguistic Approach
Readability is the ease with which a reader can understand a written text. Audit report is a message about validity of financial statements that auditors transmit to the users. It is expected that the readability of the audit report plays an important role in understanding it by users. Therefore, th...
| Main Authors: | , , |
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| Format: | Article |
| Language: | fas |
| Published: |
Allameh Tabataba'i University Press
2019-12-01
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| Series: | مطالعات تجربی حسابداری مالی |
| Subjects: | |
| Online Access: | https://qjma.atu.ac.ir/article_10955_6e5d1d2050f046a07ebf3eba02b762f0.pdf |
| _version_ | 1827400548853219328 |
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| author | mohamad reaza abbaszadeh Mahdi Salehi farhad nasimtoosi |
| author_facet | mohamad reaza abbaszadeh Mahdi Salehi farhad nasimtoosi |
| author_sort | mohamad reaza abbaszadeh |
| collection | DOAJ |
| description | Readability is the ease with which a reader can understand a written text. Audit report is a message about validity of financial statements that auditors transmit to the users. It is expected that the readability of the audit report plays an important role in understanding it by users. Therefore, the present paper aims to examine the factors affecting on readability of the audit report. To this end, the readability of 1202 audit reports belong to 2011 to 2016 (after revision in the Audit Standard 700 on 2011), using Gunning Fog Index is measured, Then the impact of the auditor's characteristics and Client's characteristics on Audit report Readability by Fuzzy Decision Tree, Ancova And step-by-step regression is studied. The results showed that, firstly, the readability of the audit reports varies with each other. Secondly, the readability of the audit reports is influenced by the auditor's characteristics and Client's characteristics. Third, most important variables determining readability of the audit report are the Auditor's Size (negative effect), auditing consolidted/not consolidted financial Statement (Consolidated one is less readable), size of the Client (negative effect), ratio of market to book value of Client (Positive effect) and Auditor's Report Type (adjusted report is less Readable). Fourth, audit report delay will reduce readability. |
| first_indexed | 2024-03-08T20:04:52Z |
| format | Article |
| id | doaj.art-3d832cb0ebcb469998048c7ca341a68c |
| institution | Directory Open Access Journal |
| issn | 2821-0166 2538-2519 |
| language | fas |
| last_indexed | 2024-03-08T20:04:52Z |
| publishDate | 2019-12-01 |
| publisher | Allameh Tabataba'i University Press |
| record_format | Article |
| series | مطالعات تجربی حسابداری مالی |
| spelling | doaj.art-3d832cb0ebcb469998048c7ca341a68c2023-12-23T10:37:34ZfasAllameh Tabataba'i University Pressمطالعات تجربی حسابداری مالی2821-01662538-25192019-12-011664315710.22054/qjma.2020.30865.177510955A Study of Factors Affecting Readability of the Audit Report: A linguistic Approachmohamad reaza abbaszadeh0Mahdi Salehi1farhad nasimtoosi2Ferdowsi University of MashhadFerdowsi university of MashhadFerdowsi University of MashhadReadability is the ease with which a reader can understand a written text. Audit report is a message about validity of financial statements that auditors transmit to the users. It is expected that the readability of the audit report plays an important role in understanding it by users. Therefore, the present paper aims to examine the factors affecting on readability of the audit report. To this end, the readability of 1202 audit reports belong to 2011 to 2016 (after revision in the Audit Standard 700 on 2011), using Gunning Fog Index is measured, Then the impact of the auditor's characteristics and Client's characteristics on Audit report Readability by Fuzzy Decision Tree, Ancova And step-by-step regression is studied. The results showed that, firstly, the readability of the audit reports varies with each other. Secondly, the readability of the audit reports is influenced by the auditor's characteristics and Client's characteristics. Third, most important variables determining readability of the audit report are the Auditor's Size (negative effect), auditing consolidted/not consolidted financial Statement (Consolidated one is less readable), size of the Client (negative effect), ratio of market to book value of Client (Positive effect) and Auditor's Report Type (adjusted report is less Readable). Fourth, audit report delay will reduce readability.https://qjma.atu.ac.ir/article_10955_6e5d1d2050f046a07ebf3eba02b762f0.pdfaudit report readabilitygunning fog indexfuzzy decision treeauditor's characteristicsclient's characteristics |
| spellingShingle | mohamad reaza abbaszadeh Mahdi Salehi farhad nasimtoosi A Study of Factors Affecting Readability of the Audit Report: A linguistic Approach مطالعات تجربی حسابداری مالی audit report readability gunning fog index fuzzy decision tree auditor's characteristics client's characteristics |
| title | A Study of Factors Affecting Readability of the Audit Report: A linguistic Approach |
| title_full | A Study of Factors Affecting Readability of the Audit Report: A linguistic Approach |
| title_fullStr | A Study of Factors Affecting Readability of the Audit Report: A linguistic Approach |
| title_full_unstemmed | A Study of Factors Affecting Readability of the Audit Report: A linguistic Approach |
| title_short | A Study of Factors Affecting Readability of the Audit Report: A linguistic Approach |
| title_sort | study of factors affecting readability of the audit report a linguistic approach |
| topic | audit report readability gunning fog index fuzzy decision tree auditor's characteristics client's characteristics |
| url | https://qjma.atu.ac.ir/article_10955_6e5d1d2050f046a07ebf3eba02b762f0.pdf |
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