The Position of Business Strategy in Improving Audit Quality with Emphasis on Environmental Factors in Iran

Objective: The professional judgment of an auditor is a key factor in the proper conducting of the audit process. To make the proper decision, the auditor must understand issues such as client operational characteristics, complexity, and organizational structure, since all of these issues can logica...

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Autores principales:	Mina Sheikhi Garjan, Iraj Noravesh, Ataollah Mohamadi Molgharani
Formato:	article
Lenguaje:	FA
Publicado:	Shahid Bahonar University of Kerman 2020
Materias:	business strategy audit quality audit report type restatements of financial statements financial reporting quality Accounting. Bookkeeping HF5601-5689
Acceso en línea:	https://doaj.org/article/c693d4109426433ba3b7f01c1992a36b
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spelling	oai:doaj.org-article:c693d4109426433ba3b7f01c1992a36b2021-11-04T19:56:22ZThe Position of Business Strategy in Improving Audit Quality with Emphasis on Environmental Factors in Iran2008-89142476-292X10.22103/jak.2020.14485.3043https://doaj.org/article/c693d4109426433ba3b7f01c1992a36b2020-11-01T00:00:00Zhttps://jak.uk.ac.ir/article_2619_fbb2b5845602990817bd654fa2ff56a5.pdfhttps://doaj.org/toc/2008-8914https://doaj.org/toc/2476-292XObjective: The professional judgment of an auditor is a key factor in the proper conducting of the audit process. To make the proper decision, the auditor must understand issues such as client operational characteristics, complexity, and organizational structure, since all of these issues can logically affect auditor's opinion. The purpose of this study was to investigate the relationship between business strategy and audit quality of the companies listed in the Tehran Stock Exchange concerning the environmental factors. Method: According to the purpose of the study, this research is applied research. In this study, according to the specific type of data and the usual method of analysis, we used the pooled data method for estimating. We used data of 135 companies listed in the Tehran Stock Exchange from 2010 to 2017. The audit quality was measured using output metrics (with type I audit error, type II audit error, new qualified report, and financial reporting quality). Results: This study showed that the relationship between business strategy and type I audit error is direct and significant, and the relationship between business strategy and type II audit error is negative and significant. Also, the type of audit report and the financial reporting quality have direct and significant relationships with business strategy. Conclusion: This study provides important insights for investors and users of financial statements. That is, determining the quality of the audit (or lack thereof) without knowing the audit and business environment of companies is incomplete and will lead to misleading decision-making Also, investors and users of financial statements can develop their insights and awareness of the quality of corporate auditing by making a logical connection with the type of business strategy of companies.Mina Sheikhi GarjanIraj NoraveshAtaollah Mohamadi MolgharaniShahid Bahonar University of Kermanarticlebusiness strategyaudit qualityaudit report typerestatements of financial statementsfinancial reporting qualityAccounting. BookkeepingHF5601-5689FAمجله دانش حسابداری, Vol 11, Iss 3, Pp 35-66 (2020)
institution	DOAJ
collection	DOAJ
language	FA
topic	business strategy audit quality audit report type restatements of financial statements financial reporting quality Accounting. Bookkeeping HF5601-5689
spellingShingle	business strategy audit quality audit report type restatements of financial statements financial reporting quality Accounting. Bookkeeping HF5601-5689 Mina Sheikhi Garjan Iraj Noravesh Ataollah Mohamadi Molgharani The Position of Business Strategy in Improving Audit Quality with Emphasis on Environmental Factors in Iran
description	Objective: The professional judgment of an auditor is a key factor in the proper conducting of the audit process. To make the proper decision, the auditor must understand issues such as client operational characteristics, complexity, and organizational structure, since all of these issues can logically affect auditor's opinion. The purpose of this study was to investigate the relationship between business strategy and audit quality of the companies listed in the Tehran Stock Exchange concerning the environmental factors. Method: According to the purpose of the study, this research is applied research. In this study, according to the specific type of data and the usual method of analysis, we used the pooled data method for estimating. We used data of 135 companies listed in the Tehran Stock Exchange from 2010 to 2017. The audit quality was measured using output metrics (with type I audit error, type II audit error, new qualified report, and financial reporting quality). Results: This study showed that the relationship between business strategy and type I audit error is direct and significant, and the relationship between business strategy and type II audit error is negative and significant. Also, the type of audit report and the financial reporting quality have direct and significant relationships with business strategy. Conclusion: This study provides important insights for investors and users of financial statements. That is, determining the quality of the audit (or lack thereof) without knowing the audit and business environment of companies is incomplete and will lead to misleading decision-making Also, investors and users of financial statements can develop their insights and awareness of the quality of corporate auditing by making a logical connection with the type of business strategy of companies.
format	article
author	Mina Sheikhi Garjan Iraj Noravesh Ataollah Mohamadi Molgharani
author_facet	Mina Sheikhi Garjan Iraj Noravesh Ataollah Mohamadi Molgharani
author_sort	Mina Sheikhi Garjan
title	The Position of Business Strategy in Improving Audit Quality with Emphasis on Environmental Factors in Iran
title_short	The Position of Business Strategy in Improving Audit Quality with Emphasis on Environmental Factors in Iran
title_full	The Position of Business Strategy in Improving Audit Quality with Emphasis on Environmental Factors in Iran
title_fullStr	The Position of Business Strategy in Improving Audit Quality with Emphasis on Environmental Factors in Iran
title_full_unstemmed	The Position of Business Strategy in Improving Audit Quality with Emphasis on Environmental Factors in Iran
title_sort	position of business strategy in improving audit quality with emphasis on environmental factors in iran
publisher	Shahid Bahonar University of Kerman
publishDate	2020
url	https://doaj.org/article/c693d4109426433ba3b7f01c1992a36b
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The Position of Business Strategy in Improving Audit Quality with Emphasis on Environmental Factors in Iran

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