The Moderating Role of Corporate Governance on the Effect of the Tenure of the Financial Manager and the Auditing Firm on Audit Quality: 
Evidence from the Iraqi Stock Exchange

Shaalan Sahm, Hind; Dastgir, Mohsen; Ibrahim Mahmood Al-Juhaishi, Bakr; Mohammadi khoshouei, Hamzeh

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year 15, Issue 59 (2023)

fa 2023, 15(59): 1-18

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The Moderating Role of Corporate Governance on the Effect of the Tenure of the Financial Manager and the Auditing Firm on Audit Quality: Evidence from the Iraqi Stock Exchange

Hind Shaalan Sahm¹

, Mohsen Dastgir ^*

¹, Bakr Ibrahim Mahmood Al-Juhaishi²

, Hamzeh Mohammadi khoshouei¹

1- Department of Accounting, Isfahan (Khorasgan) Branch, Islamic Azad University, Isfahan, Iran.
2- Department of Accounting, University of Al-Mustansiriyah, Iraq.

Abstract: (329 Views)

The main objective of this study is to examine the moderating role of corporate governance on the effect of the tenure of the financial manager and auditing firm on audit quality in the companies listed on the Iraqi Stock Exchange, including all companies and banks accepted in the Iraqi Stock Exchange from 2014 to 2021. This research has practical implications, and a multivariate regression model using EViews software has been employed to analyze the research hypotheses. The results of the hypotheses indicate that the tenure of the CEO and low-quality audit firm (such as discretionary accruals) are associated. Additionally, corporate governance in banks moderates the negative relationship between CEO tenure and audit quality, but such a relationship has not been observed for companies. Therefore, regulators should consider other institutional infrastructural relationships of the auditing firm, such as relationships between the auditing firm and client personnel, when evaluating audit firm rotation policies.

Article number: 1

Keywords: Audit Tenure, Managing Director's Tenure, Audit Quality, Iraqi Stock Exchange Member Companies and Banks.

Full-Text [PDF 650 kb] (44 Downloads)

Type of Study: Research | Subject: Special

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Shaalan Sahm H, Dastgir M, Ibrahim Mahmood Al-Juhaishi B, Mohammadi khoshouei H. The Moderating Role of Corporate Governance on the Effect of the Tenure of the Financial Manager and the Auditing Firm on Audit Quality: Evidence from the Iraqi Stock Exchange. fa 2023; 15 (59) : 1
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