Review Audit Fee Stickiness
Agency problems were created between managers and shareholders as a result of conflict of interest. Auditing is an efficient way to limit the authority of the directors in contractual relationship. In this paper, we investigate fluctuations and changes of short term and long term audit fees. For thi...
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| Format: | Article |
| Language: | fas |
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University of Tehran
2014-12-01
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| Series: | بررسیهای حسابداری و حسابرسی |
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| Online Access: | https://acctgrev.ut.ac.ir/article_52902_79a5f8db64ada993115bc18b6c69d58a.pdf |
| _version_ | 1811251902476713984 |
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| author | Mohsen Rashidi Baqhi |
| author_facet | Mohsen Rashidi Baqhi |
| author_sort | Mohsen Rashidi Baqhi |
| collection | DOAJ |
| description | Agency problems were created between managers and shareholders as a result of conflict of interest. Auditing is an efficient way to limit the authority of the directors in contractual relationship. In this paper, we investigate fluctuations and changes of short term and long term audit fees. For this purpose, the data of listed companies in Tehran Stock Exchange for the periods 2007 to 2012 were extracted. To test the hypotheses, the cross-sectional regression of the combined data was used. The results show that the stickiness of audit fees not follow a clear trend. In other words, it will be changed in a multi-year period and in short periods of time (usually annually) changes in the fee will not be visible. Also, the results show that the audit firm will not change their fee in the early year but, in subsequent years, adjust their fees according to the understanding of the client. Finally, the results indicate that auditor change resulted in audit fees closer to the standard model. |
| first_indexed | 2024-04-12T16:26:06Z |
| format | Article |
| id | doaj.art-ef52b5f451454b0cb39ce09468b828ec |
| institution | Directory Open Access Journal |
| issn | 2645-8020 2645-8039 |
| language | fas |
| last_indexed | 2024-04-12T16:26:06Z |
| publishDate | 2014-12-01 |
| publisher | University of Tehran |
| record_format | Article |
| series | بررسیهای حسابداری و حسابرسی |
| spelling | doaj.art-ef52b5f451454b0cb39ce09468b828ec2022-12-22T03:25:22ZfasUniversity of Tehranبررسیهای حسابداری و حسابرسی2645-80202645-80392014-12-0121443144810.22059/acctgrev.2014.5290252902Review Audit Fee StickinessMohsen Rashidi Baqhi0Ph.D. Candidate in Accounting, Faculty of Economic and Social Science, University of Shahid Chamran, IranAgency problems were created between managers and shareholders as a result of conflict of interest. Auditing is an efficient way to limit the authority of the directors in contractual relationship. In this paper, we investigate fluctuations and changes of short term and long term audit fees. For this purpose, the data of listed companies in Tehran Stock Exchange for the periods 2007 to 2012 were extracted. To test the hypotheses, the cross-sectional regression of the combined data was used. The results show that the stickiness of audit fees not follow a clear trend. In other words, it will be changed in a multi-year period and in short periods of time (usually annually) changes in the fee will not be visible. Also, the results show that the audit firm will not change their fee in the early year but, in subsequent years, adjust their fees according to the understanding of the client. Finally, the results indicate that auditor change resulted in audit fees closer to the standard model.https://acctgrev.ut.ac.ir/article_52902_79a5f8db64ada993115bc18b6c69d58a.pdfAudit Feefee stickinessprice behavior |
| spellingShingle | Mohsen Rashidi Baqhi Review Audit Fee Stickiness بررسیهای حسابداری و حسابرسی Audit Fee fee stickiness price behavior |
| title | Review Audit Fee Stickiness |
| title_full | Review Audit Fee Stickiness |
| title_fullStr | Review Audit Fee Stickiness |
| title_full_unstemmed | Review Audit Fee Stickiness |
| title_short | Review Audit Fee Stickiness |
| title_sort | review audit fee stickiness |
| topic | Audit Fee fee stickiness price behavior |
| url | https://acctgrev.ut.ac.ir/article_52902_79a5f8db64ada993115bc18b6c69d58a.pdf |
| work_keys_str_mv | AT mohsenrashidibaqhi reviewauditfeestickiness |