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Audit Failure, Audit Opinion and Auditor’s Remarks: The Role of Audit Partner Busyness
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Fakhroddin MohammadRezaei *   1 |
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Abstract: (4429 Views) |
| Theoretical and empirical evidence reveal that the quality of financial reporting is low in Iran and competition is high among audit firms. Although there is intense competition among audit firms, a number of the audit firms have faced with audit workload. Accessing to detailed information of audit firms motivated us to investigate the implications of audit partners for the first time in Iran. Data were collected from annual reports of listed firms in Tehran Stock Exchange and detailed information of audit firms. Multivariate analysis reveals that as the busyness of audit partners increases, the number of auditor’s remarks decreases, the issuance of modified audit opinion decreases and audit failure increases. The findings of this study support limited attention theory. In light with this theory, the attention that a person assigns to a task declines the attention that can be spent to other tasks due to the limitation of human ability in processing multiple tasks simultaneously. |
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| Keywords: Audit partner busyness, auditor’s remarks, unclean audit reports and audit failure |
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Full-Text [PDF 960 kb]
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Type of Study: Research |
Subject:
Special
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