|
Do Auditors Incorporate the Risks Related to Clients’ Organization Capital into Pricing of Audit Services? Empirical Evidence from Business and Agency Risk Assessment
|
Abolfazl Momeni Yanesari *   , Abdolkhalegh Khonaka |
| Assistant professor of Accounting, faculty of Humanities & Physical Education, Gonbad Kavous University, Gonbad, IRAN & Assistant professor of Accounting, faculty of Humanities & Physical Education, Gonbad Kavous University, Gonbad, IRAN. corresponding author. E mail: a.momeni83@yahoo.com |
|
|
Abstract: (364 Views) |
| The literature finds that auditors charge higher fees for riskier clients. One reason for this is that auditors expend greater effort on riskier clients. However, it is unclear whether they incorporate the risks associated with high Organization capital into pricing of audit services. In this regard, the present study was conducted with the aim of investigating the association between organization capital and firms’ audit fees. to do so, the research hypothesis was tested using the data of 112 firms listed in Tehran Stocks Exchange during the time period 2018 - 2022, as well as multivariate linear regression analysis. the results of testing the hypothesis indicate that auditors will charge higher fees to client firms with high levels of organization capital due to the higher assessment of their business and agency risk. |
|
| Keywords: Organization Capital, Pricing of Audit Services, Business Risk, Agency Risk |
|
|
Full-Text [PDF 1165 kb]
(161 Downloads)
|
Type of Study: Research |
Subject:
Auditing
Received: 2023/05/27 | Accepted: 2023/07/3 | Published: 2024/06/19
|
|
|
|
|
|
|
| Send email to the article author |
|
|
|
| Add your comments about this article |
|
|
|
