Article2021

The relationship between auditor characteristics and fraud detection

Jalil Khaksar · Mahdi Salehi · Mahmoud Lari Dashtbayaz

46 citations0/0 files storedJournal of Facilities Management

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Auditing, Earnings Management, Governance Accounting and Financial Management Corporate Governance and Financial Management

Abstract

Purpose This paper aims to analyze the relationship between the following auditor's characteristics with detecting frauds in the listed companies on the Tehran Stock Exchange. Design/methodology/approach A multiple regression model is used to test the research hypothesis. The hypothesis was further tested with a sample of 187 companies listed on the Tehran Stock Exchange (1,309 observations) from 2012 to 2018 and by using multiple regression models based on panel data and the random-effects model. Findings The results suggest a positive and significant relationship between audit firms' size, auditor rotation, specialization in the industry, the audit market's focus, auditor's independence, audit report lag and renewal of financial statements with fraud detection. The results revealed a significant relationship between the period of auditor tenure, auditor's narcissism, audit fees and the type of auditors' opinion (un-qualified opinion) with fraud detection. Originality/value As the present study is a pioneer in examining this issue in the emerging markets, it provides users, analysts and legal entities with useful information about auditor characteristics that significantly affect the fraud detection of financial statements. The results mitigate the literature gap and improve knowledge in this area.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 46 citations exist upstream.

References

1976Theory of the firm: Managerial behavior, agency costs and ownership structure 2003Exploring the Term of the Auditor-Client Relationship and the Quality of Earnings: A Case for Mandatory Auditor Rotation?2002Do Non–Audit Service Fees Impair Auditor Independence? Evidence from Going Concern Audit Opinions 2005The NPI-16 as a short measure of narcissism 1999The Detection of Earnings Manipulation 1983Agency Problems, Auditing, and the Theory of the Firm: Some Evidence 2002Audit‐Firm Tenure and the Quality of Financial Reports*2004Audit Firm Tenure and Fraudulent Financial Reporting

Cited by

2024Predicting financial distress in TSX-listed firms using machine learning algorithms 2023Board characteristics and the likelihood of financial statements fraud: empirical evidence from an emerging market 2024The application of machine learning to study fraud in the accounting literature 2022Auditor industry expertise and external audit prices: empirical evidence from Amman Stock Exchange-listed companies 2023Audit Quality, Institutional Environments, and Earnings Management: An Empirical Analysis of New Listings

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.