Merger, monopoly, rotation or retention and professionalism in the audit market of Iran

Vaziry, Alireza; Azadi, Keyhan; Malekichoobari, Mojtaba

doi:JABM.3.2.15564.350431

Merger, monopoly, rotation or retention and professionalism in the audit market of Iran

Document Type : Excerpt from doctoral thesis

Authors

alireza vaziry ¹

keyhan Azadi ²

Mojtaba Malekichoobari ²

¹ PhD student of accounting department, Rasht branch, Islamic Azad University, Rasht, Iran.

² Assistant Professor of Accounting Department, Rasht Branch, Islamic Azad University, Rasht, Iran.

JABM.3.2.15564.350431

Abstract

The purpose of this research is to investigate the effects of merger, monopoly, turnover or retention and professionalism in the relationship between the auditor and the employer in the auditing market of Iran. For this purpose, after conducting interviews with 19 experts including working members of the community of certified accountants (7 people), members of the board of directors of companies (5 people), partners of audit institutions (5 people) and auditors working in the auditing organization (2 people) ) and compiling and distributing a suitable questionnaire, the answers received from 303 respondents (including partners of auditing firms (103 people), auditors and legal inspectors (58 people), CEO or board member (30 people), financial managers of the company (81 people), board members University scientists (3 people) and others (28 people, including the head of the board of directors, auditors and public sector experts, etc.) were tested using the regression of the four hypotheses of the present research. The results showed that the negotiation strategies about costs, Including providing competitive pricing and explaining the value of audit services, can play an important role in auditor retention For example, if the audit firm becomes large and diverse, there may be a conflict of interest in the audit of some large clients and the auditor's independence will be affected. Also, monopoly in the audit market can endanger the independence of auditors. When there are few large auditing firms in the market, companies and entrepreneurs are forced to use the services of these firms. This situation may lead to pressures from the owners to confirm or support their financial performance.

Keywords

merger

monopoly

rotation or retention and professionalism in the auditing market

Subjects

Strategic

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