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The Effect of Audit Committee Characteristics and Auditor Changes on Financial Restatement in Iran. || El efecto de las características del comité de auditoría y los cambios de auditor en el restablecimiento financiero en Irán

Author

Listed:
  • Salehi, Mahdi

    (Ferdowsi University of Mashhad (Mashhad, Iran))

  • Mokhtarzadeh, Mahdi
  • Adibian, Mohammad Sadegh

    (Ferdowsi University of Mashhad (Mashhad, Iran))

Abstract

The present study aims to realize and become more familiar with the impact and the functions of audit committee and its characteristics, including the expertise and independence of members, related experiences, and change of auditor on the quality of financial reporting in companies listed on the Tehran Stock Exchange (TSE). The required data are gathered from 105 listed companies on the TSE during 2012-2016 and logistic regression model is used for the hypothesis testing. The findings of the study indicate a positive and significant impact of audit committee characteristics, except audit independency which represents a negative association, and changes of auditor on financial restatement. The innovation of the present study relative to other conducted studies lies in the simultaneous evaluation of audit committee characteristics and change of auditor on the quality of financial reporting. Such results could be appropriate for Stocks and Securities practitioners to comply with the chart of the audit committee, to necessitate the use of corporate governance principles, and to voluntarily provide a corporate governance report.|| El presente estudio tiene como objetivo comprender y familiarizarse más con el impacto y las funciones del comité de auditoría y sus características, incluida la experiencia y la independencia de los miembros, las experiencias relacionadas y el cambio de auditor sobre la calidad de la información financiera en las empresas que cotizan en la Bolsa de Valores de Teherán (TSE). Los datos requeridos se recopilan de 105 empresas que cotizan en el TSE durante 2012-2016 y se utiliza el modelo de regresión logística para la prueba de hipótesis. Los hallazgos del estudio indican un impacto positivo y significativo de las características del comité de auditoría, excepto la independencia de la auditoría que representa una asociación negativa, y los cambios de auditor en la reexpresión financiera. La innovación del presente estudio en relación con otros estudios realizados radica en la evaluación simultánea de las características del comité de auditoría y el cambio de auditor sobre la calidad de la información financiera. Dichos resultados podrían ser apropiados para que los profesionales de acciones y valores cumplan con el organigrama del comité de auditoría, requieran el uso de principios de gobierno corporativo y proporcionen voluntariamente un informe de gobierno corporativo.

Suggested Citation

  • Salehi, Mahdi & Mokhtarzadeh, Mahdi & Adibian, Mohammad Sadegh, 2021. "The Effect of Audit Committee Characteristics and Auditor Changes on Financial Restatement in Iran. || El efecto de las características del comité de auditoría y los cambios de auditor en el restablec," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 31(1), pages 397-416, June.
    • Handle: RePEc:pab:rmcpee:v:31:y:2021:i:1:p:397-416
    DOI: https://doi.org/10.46661/revmetodoscuanteconempresa.3816
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    References listed on IDEAS

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    More about this item

    Keywords

    financial reporting quality; audit committee characteristics; financial restatement; calidad de la información financiera; características del comité de auditoría; reexpresión financiera.;
    All these keywords.

    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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