The impact of corporate tax risk on audit fee
Auditors use several factors for pricing of audit services. Theoretically, corporate risk and complexity are the main factors affecting audit fees. The purpose of this study is to evaluate the impact of corporate tax risk on audit fees. This risk is quantificated through the company's effective...
| Main Authors: | , |
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| Format: | Article |
| Language: | fas |
| Published: |
University of Tehran
2015-09-01
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| Series: | بررسیهای حسابداری و حسابرسی |
| Subjects: | |
| Online Access: | https://acctgrev.ut.ac.ir/article_55657_f832b99547315aabd59d15446a8f863a.pdf |
| _version_ | 1818666149870567424 |
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| author | Omid Pourheidari Mojtaba Golmohammadi Shuraki |
| author_facet | Omid Pourheidari Mojtaba Golmohammadi Shuraki |
| author_sort | Omid Pourheidari |
| collection | DOAJ |
| description | Auditors use several factors for pricing of audit services. Theoretically, corporate risk and complexity are the main factors affecting audit fees. The purpose of this study is to evaluate the impact of corporate tax risk on audit fees. This risk is quantificated through the company's effective tax rate. In this regard, if the effective tax rate is lower, tax avoidance is considered higher. For this purpose, a sample of 62 companies listed on TSE from 2009 to 2014 is selected. Research hypotheses have been examined using regression analysis. Results show that a significant negative (positive) correlation exists between effective tax rate (corporate tax risk) and audit fees. In other words, if the corporate tax risk is higher, audit fee will be more. Furthermore, the results reveal a significant positive relationship between firm size and reported loss with the audit fees and a negative significant relationship between financial leverage and unqualified audit opinion with the audit fees. |
| first_indexed | 2024-12-17T05:59:57Z |
| format | Article |
| id | doaj.art-40df9429b1254cbea9b9bbfa015ae0be |
| institution | Directory Open Access Journal |
| issn | 2645-8020 2645-8039 |
| language | fas |
| last_indexed | 2024-12-17T05:59:57Z |
| publishDate | 2015-09-01 |
| publisher | University of Tehran |
| record_format | Article |
| series | بررسیهای حسابداری و حسابرسی |
| spelling | doaj.art-40df9429b1254cbea9b9bbfa015ae0be2022-12-21T22:00:54ZfasUniversity of Tehranبررسیهای حسابداری و حسابرسی2645-80202645-80392015-09-0122330131810.22059/acctgrev.2015.5565755657The impact of corporate tax risk on audit feeOmid Pourheidari0Mojtaba Golmohammadi Shuraki1Professor in Accounting, Shahid Bahonar University, Kerman, IranPhD Student in Accounting, Shahid Bahonar University, Kerman, IranAuditors use several factors for pricing of audit services. Theoretically, corporate risk and complexity are the main factors affecting audit fees. The purpose of this study is to evaluate the impact of corporate tax risk on audit fees. This risk is quantificated through the company's effective tax rate. In this regard, if the effective tax rate is lower, tax avoidance is considered higher. For this purpose, a sample of 62 companies listed on TSE from 2009 to 2014 is selected. Research hypotheses have been examined using regression analysis. Results show that a significant negative (positive) correlation exists between effective tax rate (corporate tax risk) and audit fees. In other words, if the corporate tax risk is higher, audit fee will be more. Furthermore, the results reveal a significant positive relationship between firm size and reported loss with the audit fees and a negative significant relationship between financial leverage and unqualified audit opinion with the audit fees.https://acctgrev.ut.ac.ir/article_55657_f832b99547315aabd59d15446a8f863a.pdfAudit feesEffective Tax RateTax avoidanceunqualified audit opinion |
| spellingShingle | Omid Pourheidari Mojtaba Golmohammadi Shuraki The impact of corporate tax risk on audit fee بررسیهای حسابداری و حسابرسی Audit fees Effective Tax Rate Tax avoidance unqualified audit opinion |
| title | The impact of corporate tax risk on audit fee |
| title_full | The impact of corporate tax risk on audit fee |
| title_fullStr | The impact of corporate tax risk on audit fee |
| title_full_unstemmed | The impact of corporate tax risk on audit fee |
| title_short | The impact of corporate tax risk on audit fee |
| title_sort | impact of corporate tax risk on audit fee |
| topic | Audit fees Effective Tax Rate Tax avoidance unqualified audit opinion |
| url | https://acctgrev.ut.ac.ir/article_55657_f832b99547315aabd59d15446a8f863a.pdf |
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