The effect of auditor's expertise on the relationship between the change of auditors' rank and re-presentation of financial statements

Articles in Press

Document Type : Original Article

Authors

1 Assistant Professor, Department of Accounting, Payame Noor University .Tehran, Iran

2 MSc, Department of Accounting, Payame Noor University .Tehran, Iran

10.22034/iaas.2023.398551.1474

Abstract

The purpose of this study is to investigate the effect of auditor expertise on the relationship between the change of auditors' rank and the re-presentation of financial statements of companies. The current research is applied and from the methodological point of view, the correlation is causal type (post-event). The statistical population of the research is all the companies admitted to the Tehran Stock Exchange, and using the systematic elimination sampling method, 130 companies were selected as the research sample and were investigated in the 10-year period between 1391 and 1400. The results of the research hypotheses by regression test showed that the change of auditor's grade has a direct and significant relationship with the re-presentation of financial statements. Also, the interaction of changing the auditor's grade and the auditor's expertise has the opposite effect on renewing the presentation of financial statements. In order to maintain the quality of financial statements, company owners should periodically use higher grade auditors to review financial statements. Examining the impact of auditor specialization on the reissuance of financial statements and the interaction effect of auditor grade change and specialization on their relationship can help company owners maintain the quality of financial statements by selecting auditors with higher grades. As a result, this can increase the confidence of stakeholders in the company

Keywords

Main Subjects

Accounting and Auditing Studies

Articles in Press, Accepted Manuscript
Available Online from 16 October 2023

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