The Relationship Between Accounting Comparability, Audit Delay And Audit Opinion

Document Type : Original Article

Authors

1 Assistant Professor of Accounting, Meybod University, Meybod, Iran

2 Master of Auditing, Allameh Tabatabaei University, Tehran, Iran

10.22034/iaas.2021.145160

Abstract

Audit report and its on-time issuance has information content for users. In this research, the relationship between the accounting information comparability as a qualitative feature of financial information has been tested with the audit delay and audit opinion. To measure accounting comparability, the Defranco et al. Model (2011) has been used. . In order to investigate the issue, a sample of 115 companies listed in Tehran Stock Exchange between 2014 -2018 (575 company-year) was selected and data were analyzed by panel method using regression analysis. The results of the research shows that there is a negative and meaningful relationship between the accounting comparability and audit delay and the number of explanatory paragraphs in the audit report. This conclusion can be interpreted in terms of inherent audit risk and information efficiency, since it reduces the audit risk and information acquisition costs. In short, the comparability of accounting information improves the usefulness of accounting information for independent auditors and improves the audit quality.    

Keywords

Accounting and Auditing Studies
Volume 10, Issue 40
January 2022
Pages 81-96

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