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Purpose The purpose of this paper is to apply the concept of social theories to explain auditors’ attitude toward balance time between marketing activities and auditing responsibilities. Design/methodology/approach Data were collected through a survey, from which a measure of auditor’s view on the importance of marketing was identified and regressed against balance between audit time and marketing activities. In addition, a measure of balanced attitude of auditors toward the time of the audit and marketing activities was identified and regressed against attitude toward the importance of corporate governance mechanisms. Findings The results obtained from the hypothesis test indicated that the audit fee can be a decisive factor in the status of auditors to carry out their function in the social structure which is limited to the stakeholders. The balance time between auditing and marketing is of the same importance to all auditors. Furthermore, entrepreneur auditors find the present corporate governance good for the prosperity and creativity of the forces within the auditing firms. As a result, entrepreneur auditors are very effective in corporate governance mechanisms. Originality/value The most significant contribution of the present study is the development of auditing literature to better understand and analyze the behavior of auditors.

Una mirada al entorno empresarial de auditoría, gobierno corporativo y equilibrio entre auditoría y mercadotecnia

Abstract:The purpose of this study is providing a framework for understanding the role of audit firm rotation in client expected value. And to explain the principles of client choice by auditor via specified models. We formalize this idea through stakeholder theory. Results show that the owners' expected outcome is increase in the level of reporting quality, all else held equal. Also client selection is a decrease in function with regard to the factors affecting it. Like the number of sub-branches, probability of good selection, probability of good perceived in a branch point, stages ahead and taking account of investigative intuition. We propose that retain-rotation audit firm vs. good or bad selection client relationship developed based on bid and ask process. Drawing on our analytical framework, we provide directions for further opportunities for research of client and audit firm.

Using data envelopment analysis technique, this research firstly investigated cost, revenue and profit efficiency of automobile and parts industry of companies listed in Tehran stock exchange during the years 2006 to 2009. Secondly, it explored potential relationships between a few variables including size, operating costs, profitability, asset turnover ratio and different efficiency measures calculated in the first stage. The empirical results indicated that average cost, revenue and profit efficiency of surveyed companies over the given period were 0.51, 0.57 and 0.27, respectively. In this context, inefficient companies, using efficiency frontier concept and considering benchmark units, could approach efficient levels, as it was treated in this paper. Moreover, the findings arrived from exploring potential determinants of efficiency revealed that there was a significant positive relationship between return on equity, sales to fixed assets and cost efficiency between sales to fixed assets, log. total assets, sales to total assets and revenue efficiency and finally between sales to fixed assets, log. total assets and profit efficiency. These results implied that the more a company was large, the more it was revenue and profit efficient. Also, they highlight effective role of fixed assets in firms operations and generating profits.