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Firm Size, Audit Regulation and Fraud Detection: Empirical Evidence from Iran

Author

Listed:
  • Mahdi Salehi

    (University of Zanjan, Iran)

  • Ali Mansoury

    (University of Zanjan, Iran)

Abstract

An auditor has the responsibility for the prevention, detection and reporting of fraud. Illegal acts and errors are the most controversial issues in auditing, and have been the most frequently debated areas amongst auditors, politicians, media, regulators and the public. Prior research has documented a positive association between audit quality and auditor size. While some studies have used the audit fee as a surrogate for audit quality, other studies have employed more direct measures, such as the outcomes of quality control reviews. Those latter studies, however, used samples that suffer from severe geographic or client-type restrictions. Moreover, most studies of the quality-size relationship have focused on relatively large cpa firms. By the way, in recent years there has been considerable debate about the nature of audit practice (Salehi 2007). Auditors also have responsibility for ensuring the accuracy and precision of statements prepared by managers.

Suggested Citation

  • Mahdi Salehi & Ali Mansoury, 2009. "Firm Size, Audit Regulation and Fraud Detection: Empirical Evidence from Iran," Management, University of Primorska, Faculty of Management Koper, vol. 4(1), pages 5-19.
    • Handle: RePEc:mgt:youmng:v:4:y:2009:i:1:p:005-019
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    References listed on IDEAS

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    Cited by:

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    2. Taslima Akther & Fengju Xu, 2020. "Existence of the Audit Expectation Gap and Its Impact on Stakeholders’ Confidence: The Moderating Role of the Financial Reporting Council," IJFS, MDPI, vol. 8(1), pages 1-25, January.
    3. Salehi Mahdi & Mohammadi Ali & Taherzadeh Esfahani Parisa, 2013. "Investment-Cash Flow Sensitivity: A Study of Iranian Listed Companies," Organizacija, Sciendo, vol. 46(3), pages 87-97.
    4. Dusica STEVCEVSKA SRBINOSKA, 2022. "Audit modifications in emerging markets: The Macedonian Stock Exchange," Romanian Journal of Economics, Institute of National Economy, vol. 55(2(64)), pages 43-69, December.
    5. Amahalu Nestor Ndubuisi & Moses Nnoruga Okeke & Obi Juliet Chinyere, 2017. "Audit Quality Determinants: Evidence from Quoted Health Care Firms in Nigeria," 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. 7(4), pages 216-231, October.
    6. Amahalu Nestor Ndubuisi & Beatrice O. Ezechukwu, 2017. "Determinants of Audit Quality: Evidence from Deposit Money Banks Listed on Nigeria Stock Exchange," 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. 7(2), pages 117-130, April.

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