2015
DOI: 10.1111/ijau.12059
|View full text |Cite
|
Sign up to set email alerts
|

The Effects of Audit Market Liberalisation and Auditor Type on Audit Opinions: The Iranian Experience

Abstract: Audit services were provided exclusively by a state entity in Iran until late 2001, when the audit market was liberalised. The liberalisation of the audit market resulted in increased competition, as more private auditors became licensed to operate and provide audit services. The present study examines the effects of audit market liberalisation and auditor type (i.e., state and private auditors) on audit opinions. It is predicted that increased competition in the audit market may reduce the relative bargaining… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
2
2
1

Citation Types

3
34
0

Year Published

2018
2018
2021
2021

Publication Types

Select...
6
1

Relationship

1
6

Authors

Journals

citations
Cited by 26 publications
(37 citation statements)
references
References 34 publications
3
34
0
Order By: Relevance
“…Secondly, this study is also motivated by recent changes in professional standards related to auditor independence in Iran in a bid to increase our understanding of the similarities and differences compared to IFAC code of independence and other threats identified in the literature (Kosmala, 2007;Lee & Stone, 1995;Ramazani & Atani, 2010;Salehi & Husini, 2011). This study is also driven by the mixed, if not, conflicting results in the literature on threats to independence in Iran (MohammadRezaei, Mohd-Saleh, Jaffar, & Hassan, 2016;Salehi, 2009aSalehi, , 2009bSalehi et al, 2009a). As advanced by Salehi (2009a), there is yet no clear evidence on auditor independence in Iran.…”
Section: Introductionmentioning
confidence: 90%
“…Secondly, this study is also motivated by recent changes in professional standards related to auditor independence in Iran in a bid to increase our understanding of the similarities and differences compared to IFAC code of independence and other threats identified in the literature (Kosmala, 2007;Lee & Stone, 1995;Ramazani & Atani, 2010;Salehi & Husini, 2011). This study is also driven by the mixed, if not, conflicting results in the literature on threats to independence in Iran (MohammadRezaei, Mohd-Saleh, Jaffar, & Hassan, 2016;Salehi, 2009aSalehi, , 2009bSalehi et al, 2009a). As advanced by Salehi (2009a), there is yet no clear evidence on auditor independence in Iran.…”
Section: Introductionmentioning
confidence: 90%
“…Since late 2001, the Iranian auditing market has shifted away from a focus on a government entity (i.e., IAO) and has been liberalized, leading to a decline in the IAO market share of about 73% in 1998 (Azizkhani, 2012), to the extent that in the present research sample, the IAO has a market share of about 20%, and the IACPA member institutions have a market share of about 80%. However, it seems that this liberalization has created special conditions for the Iranian auditing market, and has led to the establishment of numerous private auditing firms and an increase in supply that is incompatible with the demand for auditing services (Mohammad Rezaei et al., 2016).…”
Section: Institutional Settingmentioning
confidence: 99%
“…3 From 1993 to 2001 (the year IACPA was established), IAO dominated the Iranian audit market. Unlike the audit markets of most developed countries, the Iranian audit market is competitive, even though IAO almost has a monopoly over the auditing of state and semi-state firms (MohammadRezaei et al 2016;Bagherpour et al 2014).…”
Section: Background and Hypothesis Developmentmentioning
confidence: 99%
“…Although each year SEO imposes disciplinary sentences for trusted audit firms at the firm and partner levels and IACPA conducts peer reviews (firm-level reviews), the results are not made available to the public. Furthermore, due to inadequate demand for high-quality audit services and low litigation risk, reputation capital is not a very strong incentive for audit firms to provide quality services and industry expertise is not such an important topic at the firm and partner levels to serve as a driver of high-quality audit services (MohammadRezaei et al 2016).…”
Section: Background and Hypothesis Developmentmentioning
confidence: 99%
See 1 more Smart Citation