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Investigating and comparing audit quality of big and small audit firms using Benford law
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Esmaeil Akhlaghi Yazdinejad *   , Mojtaba Safipour Afshar , Hossein Nurani |
| Hormozgan University |
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Abstract: (748 Views) |
| This research investigates the quality of Big-audit firms’ services using the Benford Law. Research population consists of firms listed in Tehran Stock Exchange (TSE) and research sample consists of 48 firms listed in TSE during 2007 to 2017. For the purpose of investigating and comparing real distribution of financial statements numbers with anticipated distribution (Benford), we used Z-Test, Chi Square test and kramer Test. The results show that balance sheet and cash flow statement numbers of big audit firms are compatible with Benford Law, and also for small audit firms. However, the results show that income statement numbers in big audit firms is more compatible with Benford Law, compared to small audit firms. |
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| Keywords: Audit services quality, Big and Small audit firms, Benford Law |
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Full-Text [PDF 536 kb]
(178 Downloads)
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Type of Study: Research |
Subject:
Auditing
Received: 2019/07/14 | Accepted: 2019/08/28 | Published: 2020/11/30
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