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Iranian Angle to Non-Audit Services: Some Empirical Evidence

Author

Listed:
  • Mahdi Salehi

    (Ferdowsi University of Mashhad, Iran)

  • Mehdi Moradi

    (Ferdowsi University of Mashhad, Iran)

Abstract

The purpose of this paper is to show different Iranian accountants’ as well shareholders’ ideas on Non-audit services and their effects on audit independence in Iran. In other words, in this paper the authors have attempted to deal with this question: does providing non-audit services by an Iranian auditor impair audit independence? And in order to gather usable data a suitable questionnaire was designed and developed. The results of this study show that the participants strongly believe that non-audit services may impair audit independence. It is interesting to note that, although the auditors offer to clients non-audit services, they believe that offering such services leads to audit independence being questionable. Further, the result reveals that literate participants moderately agree that NAS has a negative effect on audit independence, however illiterate participants strongly agree that NAS has a negative affect on audit independence. This paper is the first paper which includes two groups of participants: the first group is auditors in general, or we can call them academiciana with pretensions to having auditing literacy and the second group is non- academician, including stakeholders who may not have auditing literacy skills. This may useful for future studies regarding the non-audit service and its effect on audit independence.

Suggested Citation

  • Mahdi Salehi & Mehdi Moradi, 2010. "Iranian Angle to Non-Audit Services: Some Empirical Evidence," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 8(2), pages 123-144.
    • Handle: RePEc:mgt:youmgt:v:8:y:2010:i:2:p:123-144
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    File URL: http://www.fm-kp.si/zalozba/ISSN/1581-6311/8_123-144.pdf
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    References listed on IDEAS

    as
    1. Okeefe, Tb & Simunic, Da & Stein, Mt, 1994. "The Production Of Audit Services - Evidence From A Major Public Accounting Firm," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 32(2), pages 241-261.
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    Cited by:

    1. Siti Subaryani Binti Zainol & M. Krishna Moorthy & Tengku Rahimah Binti Tengku Arifin, 2012. "Determinants of Non-Audit Services in Malaysia: A Theoretical Model," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 2(3), pages 97-111, July.

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    Keywords

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    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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