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Cyber Risks and Audit Fees: The Moderating Effect of Auditor Characteristics
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Halimeh Rahmani   , Ruhollah Amareh * |
| Corresponding Author, Ph.D. in accounting, Standards development researcher, Audit organization, Email: amareh.ruhollah@gmail.com 0000-0002-4153-3378 |
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Abstract: (247 Views) |
| Considering the importance of auditors assessing business risks and evaluating internal controls, the question arises of whether independent auditors can understand the external and internal threats faced by clients in the presence of cyber risks within companies. Accordingly, this research examines the relationship between cyber risks and audit fees and the moderating effects of auditor characteristics in companies listed on the Tehran Stock Exchange from 2013 to 2022. The results indicate that companies lacking strong internal control mechanisms for identifying and responding to cyber risks experience higher audit fees. Furthermore, larger companies with greater capital are more involved in cyber risks and likely incur higher audit costs. Additionally, auditors with specialized industry knowledge receive higher fees. The interaction between auditor expertise and cyber risk suggests that auditors familiar with cyber risks can streamline the audit process and potentially reduce costs. Also, auditors with longer tenures receive higher fees. The interaction between auditor tenure and cyber risk showed that the effect of this relationship diminishes over time with the tenure of current auditors. While a positive coefficient for the auditor size variable was expected, this variable had no significant correlation with audit fees. |
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| Keywords: Audit Fees, Cyber Risks, Auditor Characteristics. |
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Full-Text [PDF 597 kb]
(274 Downloads)
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Type of Study: Research |
Subject:
Auditing
Received: 2024/09/10 | Accepted: 2024/12/3 | Published: 2025/10/2
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