|
|
|
|
 |
year 12, Issue 47 (2020) |
 |
|
|
|
|
The relation between audit fee cuts during the economic crisis and accounting information quality
|
Babak Abedi sadaghiani1   , Seyed Ali Vaez *1 , Esmaeil Mazaheri1 , Ebrahim Anvari1 |
| 1- Shahid Chamran University of Ahvaz |
|
|
Abstract: (3633 Views) |
| The quality of accounting information plays an important role in user decisions, reducing information asymmetry and optimal resource allocation. Researchers consider several factors to affect the accounting information quality. The role of economic crisis and audit fees in the present study on the accounting information quality has been investigated. During years of economic crisis, auditors are pressured by some clients to consider cut audit fees. In Iran, due to inflationary conditions, this issue manifests itself mainly in the form of an increase in auditing fees to a lesser extent than the general increase in prices. As auditing fees decrease or increase below the inflation rate, there is a concern that auditors' efforts will be diminished and that this will impair the quality of the audited information. Overall, the research findings show that although the economic crisis following the currency shock in 2012 has affected the accounting information quality, but there is no significant difference in accounting information quality, between client firms that received a fee cut during the economic srisis and other client firms. Our findings contribute to understanding the role of audit fees during the economic srisis. |
|
| Keywords: Audit fees, Economic Crisis, Abnormal Accruals, Earnings Persistence, Conservatism. |
|
|
Full-Text [PDF 1458 kb]
(419 Downloads)
|
|
Type of Study: Research |
Subject:
Special
|
|
|
|
|
|
|
| Send email to the article author |
|
|
|
| Add your comments about this article |
|
|
|
|
|
|
|
|
|
|
|
