Accounting and Auditing Review - Profile on Academia.edu (original) (raw)

Papers by Accounting and Auditing Review

Accounting and Auditing Review, 2025

Objective According to the literature on management accounting, various constructs influence the ... more Objective
According to the literature on management accounting, various constructs influence the financial performance of companies. One of these constructs is the evolution and transformations within the network of actors driving innovations in management accounting, which continuously occur in the commercial environment surrounding companies. The primary objective of this research is to examine the impact of these actor networks related to management accounting innovations on the financial performance of companies, considering both Eastern and Western perspectives. This study aims to identify the most effective approach to management accounting innovations in both the West and the East for enhancing performance. It does so by analyzing the evolution of management accounting across different periods and examining the methods implemented in various years to apply management accounting.
Methods
The statistical population of this study consists of companies listed on the Tehran Stock Exchange and the Iran over-the-counter (OTC) market during the financial period from 2011 to 2022. Based on the mentioned criteria, 215 companies (2,580 company-years) were selected over a 10-year period, and data analysis was conducted using structural equation modeling.

Accounting and Auditing Review, 2025

Objective The auditors' professional commitment has always been one of the most critical factors ... more Objective
The auditors' professional commitment has always been one of the most critical factors in introducing the vital position of auditing in society and promoting the growth and development of the auditing profession. Due to the numerous financial scandals worldwide, auditors' professional commitment has become more important. One factor affecting auditors' professional commitment is their differences, such as internal locus of control. Also, psychological factors, one of which is psychological well-being, play an important role in this issue. This study aims to investigate the mediating role of auditors' psychological well-being in the relationship between the internal locus of control and their professional commitment.
Methods
This research is applied research, and in terms of method, it is a descriptive survey. Since it was conducted in a real environment, i.e., audit organizations and audit firms, it is considered a field research type. Multiple regression models were used to test the research hypotheses, and the Sobel test was used to examine the role of the mediator variable (psychological well-being). The statistical population of this research consists of certified public accountants who are self-employed or employed in audit organizations and audit firms. Based on the latest data from the Iranian Association of Certified Public Accountants (IACPA) website, the total population was 1,984 individuals. Data were collected using a questionnaire, resulting in 247 completed responses.

Accounting and Auditing Review, 2025

Objective Auditors have a degree of flexibility in choosing the wording and phrasing of Emphasis ... more Objective
Auditors have a degree of flexibility in choosing the wording and phrasing of Emphasis of Matter (EOM) paragraphs in audit reports, and their content is often influenced by interactions between auditors and client managers during the drafting process. This study examines the relationship between management ability and the tone of EOM paragraphs. The primary objective is to provide empirical evidence on the extent to which auditors utilize the tone of their reports to convey their perspectives on financial statement items to financial statements users and how client characteristics, particularly managerial ability, influence the tone adopted in audit reports.
Methods
The study analyzes the tone of 2,104 EOM paragraphs from audit reports issued for 179 firms listed in Tehran Stock Exchange (TSE) over the period 2016 to 2023. It applies Natural Language Processing (NLP) approach leveraging the GPT-4 API and a Python-based script specifically developed for this purpose. This script and the GPT prompt were configured to output the percentages of positive, negative, and neutral tones for each paragraph, as well as classify each paragraph into one of the three categories: positive, negative, or neutral. To measure firms efficiency and managerial ability, the study uses the Demerjian, Lev, and McVay (2012) model. The research hypotheses are tested using Tobit and logistic regression models.

Accounting and Auditing Review, 2025

Objective Since 2022, the implementation of Audit Standard No. 701, titled "Communication of Key ... more Objective
Since 2022, the implementation of Audit Standard No. 701, titled "Communication of Key Audit Matters" in the Independent Auditor's Report, has been mandatory in Iran. According to this standard, the auditors must communicate their judgment regarding what constitutes a Key Audit Matter (KAM). Given the judgmental nature of the disclosure of the client's Key Audit Matters by the auditor, the importance of this issue lies in whether the matters outlined in Standards 701, 706, and 570 are sufficiently clear and appropriate for auditors to classify the identified issues correctly as KAMs, emphasis-of-matter paragraphs, or going concern uncertainties. This research examines the adequacy and accuracy of classifying the requirements of Audit Standard 701 (disclosure of Key Audit Matters) in comparison to Standard 706 (emphasis-of-matter and other explanatory paragraphs in the Independent Auditor's Report) and Standard 570 (going concern).
Methods
This applied research is based on a survey of members of the Iranian Association of Certified Public Accountants (IACPA). The study employs a cross-sectional method with a sample size of 128 auditors and utilizes a researcher-developed questionnaire. The collected data is analyzed using the Z-test to assess auditors' confusion in interpreting and accurately classifying the issues outlined in the aforementioned standards.

Accounting and Auditing Review, 2025

Objective In recent years, accounting researchers have primarily focused on the management of dis... more Objective
In recent years, accounting researchers have primarily focused on the management of discretionary accruals and the manipulation of real business activities, paying less attention to earnings management through classification shifting of income statement items. Although the topic of earnings management through classification shifting has recently gained attention from researchers, and some domestic studies have addressed it, there is limited empirical evidence on how classification shifting can be influenced by managerial beliefs. Therefore, this study aims to investigate the relationship between managers' overconfidence and classification shifting and examine the moderating role of managerial ability in this relationship.
Methods
To test the research hypotheses, data from 138 firms listed on the Tehran Stock Exchange over the period 2012–2023 (1,656 firm-years) were utilized. The Generalized Least Squares (GLS) method was applied for model estimation, with controls for both year and industry fixed effects. To address potential issues of heteroscedasticity and autocorrelation in the errors, cluster-robust standard errors at the firm level were employed. The models for measuring unexpected core earnings and unexpected changes in core earnings were estimated cross-sectionally at the industry level (120 industry-years).

Accounting and Auditing Review, 2025

Objective The objective of financial statements is to provide useful information to users for mak... more Objective
The objective of financial statements is to provide useful information to users for making economic decisions. High-quality information improves resource allocation and enhances market efficiency. The reliability and quality of financial statements are verified by auditors. In other words, auditors enhance financial reporting quality through high-quality audit services. Previous research shows that there is no reliable proxy for evaluating the quality of audit services. In the literature, auditor size (due to the independence and competence that a larger size offers) is commonly used as a proxy for audit quality. However, some studies have questioned this theory, known as the "auditor size theory." Audit firm size is primarily characterized by Big N membership. Since Big N firms have not operated in Iran since the Islamic Revolution in 1979, Iranian researchers lack a mechanism to distinguish high-quality auditors. This study uses audit firm revenue as a proxy for auditor size and aims to test whether the revenues of audit firms in Iran are reliable indicators of the quality of their work.
Methods
The data from companies listed on the Tehran Stock Exchange between 2015 and 2020 have been used. To measure audit quality, seven different criteria have been employed: type of audit opinion, number of clauses and non-recurring clauses in the audit report, audit failure, accrual management, accrual quality, and accounting conservatism. This study focuses only on private TAFs because the Iranian Audit Organization (IAO) and Mofid Raahbar Audit Firm (MRAF), as state audit firms, have a monopolistic market share in auditing state-owned enterprises. Therefore, client firms audited by the IAO and MRAF have been excluded. In total, the final sample of this study includes 1,188 firm-year observations.

Accounting and Auditing Review, 2025

Objective One of the most important principles in auditing is professional skepticism. According ... more Objective
One of the most important principles in auditing is professional skepticism. According to professional standards, skepticism is defined as the auditor's attitude toward the critical evaluation of audit evidence. Professional skepticism is an attitude that requires the auditor to have a questioning mind and critically evaluate evidence. The principle of professional skepticism is deeply rooted in auditing standards, and regulators around the world often identify a lack of skepticism as one of the fundamental reasons for audit deficiencies. However, unjustified skepticism cannot always be considered a criterion for audit deficiencies. The auditing and accounting literature considers various factors as the reason why the excess and deficiency of this factor can have different consequences. To manage possible consequences, the present study aims to present a conceptual model of auditors' professional skepticism.
Methods
This study is a qualitative and exploratory research project conducted by interviewing experts in the theoretical foundations of behaviorism and auditing. Information was collected using purposeful sampling with the participation of 18 experts in 2025. In the next stage, the collected factors were confirmed using Delphi analysis and the opinions of 12 previous and new experts.

Accounting and Auditing Review, 2025

Objective Over the last few years, pension funds have encountered sustainability issues. Despite ... more Objective
Over the last few years, pension funds have encountered sustainability issues. Despite this, no scientific research has been conducted on strategies for overcoming instability. Therefore, the current issue is to identify the key drivers influencing the financial sustainability of pension funds and analyze and understand their interrelationships. Additionally, it is crucial to pinpoint areas for action and develop strategies and plans to overcome financial instability based on potential future scenarios.
Methods
In terms of its goal and nature, the current study is applied and uses a mixed-methods approach, respectively. Moreover, the study was conducted using both survey and exploratory approaches. To address the issue, the impact and influence of the key drivers were determined through structural analysis and results obtained from MicMac software. By identifying the significant and uncertain key drivers, future scenarios were extracted according to the Schwartz Theory. Through content analysis of expert interview results and the literature review, the areas of action and policy-making for pension funds were examined, and strategies were formulated by integrating these actions. Using MATLAB software, the fuzzy inference system, and based on six stable planning methods, robust strategies to improve financial sustainability were established.

Accounting and Auditing Review, 2025

Objective Iranian researchers in the field of accounting face a critical challenge in choosing be... more Objective
Iranian researchers in the field of accounting face a critical challenge in choosing between adhering to international or local writing conventions. Despite a significant increase in the number of domestic academic journals and accounting graduates over the past 15 years, the rate of publications of original, high-quality articles in reputable international journals remains low. Efforts to enhance article-writing practices and align with global scientific standards have yielded limited success, leaving locally published articles burdened with content, structural, and formal deficiencies. Drawing on prior research and existing methodology literature, this study provides practical guidelines to improve the quality of quantitative accounting articles and enhance their alignment with international standards.
Methods
This study employs a comparative approach, which involves drawing insights from accounting articles published in prestigious international journals and incorporating key points from both domestic and international methodology research and literature. The aim is to develop a quantitative paper that meets global scientific standards. Initially, an appropriate pattern is introduced, representing all essential components of a quantitative accounting study. Subsequently, based on relevant theoretical and empirical evidence, the essential guidelines for developing each component of a quantitative accounting article are provided in the form of “best practices” and “pitfalls to avoid.” Additionally, references to authoritative sources are made to substantiate the underlying rationale for these points and provide concrete examples.

Accounting and Auditing Review, 2025

The importance of sustainability and the need for transparent, comparable performance reports hav... more The importance of sustainability and the need for transparent, comparable performance reports have grown significantly. Companies are increasingly recognizing the necessity of sustainability reporting to offer valuable insights into their economic, social, and environmental impact. Sustainability reporting is also essential for building trust with stakeholders, including investors, customers, employees, and the broader community. Therefore, ensuring the accuracy and reliability of the information presented in sustainability reports has become a fundamental concern for organizations. Sustainability reporting enables companies to identify and address sustainability risks, manage their profits more effectively, improve their international rankings, and foster global interactions. Furthermore, the comparability of accounting information allows stakeholders to discern differences and similarities in financial data, facilitating more informed decision-making processes. These aspects are vital for maintaining continuous profitability in corporations. Consequently, this study aims to provide empirical evidence on the impact of sustainability reporting disclosure and the comparability of accounting information on profit sustainability in companies listed in the Iranian capital market.

Accounting and Auditing Review, 2025

Objective The primary challenges of the 21st century, particularly resource scarcity and the effi... more Objective
The primary challenges of the 21st century, particularly resource scarcity and the efficient utilization of resources, have intensified global awareness of sustainability and its implications for sustainable development. Achieving sustainable development requires businesses to adopt strategies that integrate economic objectives with environmental and social dimensions. As critical pillars of society, companies significantly influence sustainable development initiatives; their collaboration is essential for meaningful progress. The implementation of sustainability initiatives serves as a precursor to the disclosure of sustainability information, enabling companies to reap the advantages of both implementation and disclosure processes. Therefore, this study aims to investigate the influence of material sustainability information disclosure on company performance, while also considering the moderating effect of business strategy.
Methods
This research adopts a descriptive-correlational approach with a focus on practical application. A library method was utilized to gather relevant information and establish theoretical foundations. Financial data were extracted using document mining techniques applied to audited financial statements, while sustainability information was obtained through content analysis and mapping from the companies' board of directors or sustainability reports. The statistical population comprises 102 companies listed on the Tehran Stock Exchange from 2018 to 2022.

Accounting and Auditing Review, 2025

Objective The transition toward International Financial Reporting Standards (IFRS) has emphasized... more Objective
The transition toward International Financial Reporting Standards (IFRS) has emphasized the role of fair value in financial reporting. To determine fair value in financial reports, preparers rely on observable market-based inputs and unobservable inputs derived from the reporting entity’s assumptions. Given the extensive reliance on professional judgment in determining fair value, particularly following the approval of Iranian Accounting Standard No. 42, and the lack of operational guidelines for its implementation, this study aims to develop a systematic framework for professional judgment in fair value measurement to enhance the preparation of financial information in Iran.
Methods
This study utilized a combination of systematic literature review and fieldwork methods. Data were collected through semi-structured interviews with 10 Iranian accounting and auditing experts from four groups—valuers, auditors, preparers, and regulators—conducted between the beginning and end of August 2023. Additionally, a structured questionnaire based on fuzzy logic was administered to 30 experts from the same groups, and the Delphi method was applied to analyze the results. The Best-Worst Method (BWM) was also used to assess the significance and prioritize the components of the framework with input from 8 experts. The Kruskal-Wallis statistical test was employed to compare the views of the four groups, and follow-up interviews with 5 experts were conducted to evaluate the internal validity of the findings.

Accounting and Auditing Review, 2025

Improving the firm's financial and non-financial performance in the era of globalization has alwa... more Improving the firm's financial and non-financial performance in the era of globalization has always been the demand of, and received attention from, stakeholders. In addition, after global warming, market collapse, and economic crises, stakeholders become increasingly aware of the importance of environmental, social, and governance performance as one of the non-financial components that can affect the firm's financial and non-financial performance. The firm's financial and non-financial performance is linked to the structural elements of management and the composition of the board of directors. Managers as representatives of stakeholders must protect their interests, but all their strategic decisions, including decisions related to environmental, social, and governance activities, are affected by their characteristics. Integrating ESG factors into management characteristics reshapes the firm's strategies and practices. Firms that prioritize these elements are likely to enhance their reputation, attract investment, and achieve sustainable growth. Based on this, the current research aims to investigate the moderating role of management's structural characteristics on the impact of environmental, social, and governance performance on the firm's financial and non-financial performance.

Accounting and Auditing Review, 2024

Objective The theoretical framework of management accounting encompasses the principles and conce... more Objective
The theoretical framework of management accounting encompasses the principles and concepts used to prepare and interpret financial information for managers. This framework assists accountants in preparing financial information aligned with organizational objectives and aids managers in accurately interpreting this information for effective decision-making. Additionally, it enhances the efficiency and quality of financial information and increases trust in organizations. Therefore, providing a coherent model for developing the theoretical framework of management accounting is crucial. Accordingly, this research aims to elucidate the importance of the theoretical framework of management accounting and propose an appropriate model for its development. Hence, the primary issue addressed in this study is to determine what model can be prescribed for developing the theoretical framework of management accounting.
Methods
In this research, both field and library methods were utilized to implement a grounded theory approach aimed at identifying core categories, causal conditions, contextual conditions, strategies, intervening conditions, and outcomes for developing the research model in 2023. The study population includes experts in management accounting, university professors in the field of accounting, and other scholars in management accounting from both domestic and international contexts, whose teaching and research areas closely align with the subject of this research and who have encountered it in their work. A purposive snowball sampling approach was employed for sample selection in this study. To extract the components influencing the development of the theoretical framework of management accounting, and given the lack of a coherent model in the related literature, a systematic review of theoretical foundations and semi-structured interviews with 13 experts from both domestic and international contexts were conducted. This approach aimed to address the weaknesses of existing theoretical foundations and ensure the identified categories reached a saturation stage.

Accounting and Auditing Review, 2024

Objective One of the multifaceted studies that has received less attention in the accounting lite... more Objective
One of the multifaceted studies that has received less attention in the accounting literature is the topic of public-sector accounting education. In contrast, this topic significantly impacts the advancement of public sector goals. For this reason, and due to the necessity of creating an appropriate position for public sector accounting in Iran, a public sector accounting minor was added to the graduate level of accounting for the first time since 2017. The curriculum for this field was authorized by the Development and Planning Council of the Ministry of Science in 2018. However, despite the many successes in establishing this field, due to the low capacity for accepting students and its centralization in the two cities of Karaj and Tehran, universities have not been very successful in educating and training the human resources needed by the public sector. Therefore, the purpose of the current research is to analyze the attitudes and lived experiences of public-sector accounting graduates regarding public-sector accounting education in Iranian universities.
Methods
In this research, a phenomenological approach was used to understand the lived experiences of accounting graduates in the public sector. The statistical population of the research includes all accounting graduates majoring in public sector accounting, who were selected using the purposeful sampling method. Fifty-three individuals were selected to reach theoretical saturation, and the main method of data collection was an unstructured interview with open-ended questions. This provided the participants with the opportunity to fully describe their experiences regarding public sector accounting education. In the current research, data analysis was conducted in five steps, using Giorgi's method.

Accounting and Auditing Review, 2024

Objective In recent years, the rapid advancement of technology has significantly reduced informat... more Objective
In recent years, the rapid advancement of technology has significantly reduced information distortions and eased restrictions on accessing information. Accounting is one of the fields most influenced by these changes. Emerging technologies, such as artificial intelligence, blockchain, and cloud computing, have improved data quality and increased the speed of access to information. Therefore, identifying these technologies and evaluating their efficiency has become essential for survival in the current information age. This research aims to identify the effective dimensions of these new technologies on the accounting profession to enhance its capabilities and increase efficiency in real-time decision-making.
Methods
This research is qualitative, applied in its objectives, descriptive in methodology, and employs a survey approach. By adopting a systematic approach and considering the study's exploratory nature, this research aims to identify and analyze the significant effects of new technologies on the accounting profession. It also highlights the necessity of systematically and methodically analyzing the effective dimensions of these technologies and integrating the findings of previous studies that have addressed this subject. The qualitative meta-synthesis method of Sandelowski and Barroso, consisting of seven stages, was utilized to achieve this objective. The sample included 40 articles selected from the research period spanning March 2019 to October 2020. After extracting the effective dimensions of these new technologies using the meta-synthesis method, the impact coefficient of each dimension was determined through the Shannon Entropy method based on a content analysis approach. Finally, the categorized components were ranked using the SWARA method.

Accounting and Auditing Review, 2024

Objective Management accountants play a crucial role in shaping the strategic direction of organi... more Objective
Management accountants play a crucial role in shaping the strategic direction of organizations by utilizing management accounting techniques, which are essential tools for achieving strategic objectives. The design and implementation of management accounting techniques are strongly influenced by organizational culture, i.e., the ability of management accountants to build strong relationships with others, and the development of efficient information systems. This study investigates the impact of four contingent variables (soft skills, information systems, innovation culture, and outcome culture) alongside four control variables (firm size, competition, perceived environmental uncertainty, and product diversity). The study is grounded in a comprehensive model that outlines how these factors influence the implementation of strategic management accounting techniques.
Methods
This research is classified as applied in nature, and the data collection method employed is a descriptive-survey. The data was collected through a 5-point Likert scale questionnaire. The questionnaire included two parts; the first part included demographic questions, and the second part included questions related to research constructs. The study's population consisted of accountants employed in manufacturing companies. The sample size comprised 173 accountants. To analyze the data, structural equation modeling (SEM) was employed using SPSS version 26 and Smart PLS software version 3.

Accounting and Auditing Review, 2024

Objective This research aims to assess the internal quality level of the Master's curriculum in A... more Objective
This research aims to assess the internal quality level of the Master's curriculum in Auditing from the perspectives of professors and students in this field, based on the nine elements of the Francis Klein model. The goal is to inform the curriculum developers about the program's success rate in achieving the desired educational objectives (in what ways it has been effective and in what ways it needs to be changed or supplemented) and to facilitate decision-making for its improvement to achieve the desired efficiency and outcomes.
Methods
This research is quantitative and classified as a descriptive study. A questionnaire was used to collect research data. The research questionnaire was completed by 46 out of 52 students in the third semester and beyond of the master's degree in auditing at public universities in the country, as well as by 28 out of 51 academic staff members of these universities. The resulting data were analyzed using SPSS software, and a one-sample t-test was performed.

Accounting and Auditing Review, 2024

The rotation and tenure of audit partners are crucial factors for large corporations, as they sig... more The rotation and tenure of audit partners are crucial factors for large corporations, as they significantly affect the quality of financial reporting. This study is among the first to provide empirical evidence on the relationship between audit partner tenure and audit quality. The research aims to explore this relationship while examining the moderating role of switching audit firms.
Methods
The current research was conducted within the unique context of Iran, focusing on evaluating the turnover of audit firm partners. To measure this turnover effectively, the study employs the research model developed by Giper et al. (2021). By applying this model in the Iranian context, the research aims to uncover insights specific to regulations that influence audit partner rotation. This model provides a structured framework for analyzing the relationships between partner tenure, audit quality, and financial reporting outcomes. The study examined companies listed on the Tehran Stock Exchange. A total of 136 companies were selected as the sample for the period from 2013 to 2021, yielding 1,224 observations. The data was analyzed using the panel data method.

Accounting and Auditing Review, 2024

Objective The growth of companies has introduced regulatory and oversight challenges, primarily d... more Objective
The growth of companies has introduced regulatory and oversight challenges, primarily due to the lack of continuous supervision by shareholders within these organizations. Although auditors’ responsibilities are defined, their thought patterns may not always align with the public interest. They sometimes pursue personal objectives instead, resulting in a phenomenon called the alignment of auditor and client interests. Given the limited research on thought patterns and competition in the Iranian audit market, this study explores the significance of independence and public interest protection in combating financial fraud and ensuring financial health in reports. Additionally, it examines how the absence of international auditing firms may heighten the alignment of interests between clients and auditors, focusing on the role of post-materialism in these dynamics.
Methods
This research employs a descriptive and correlational design to analyze the relationships between various variables. The statistical population for distributing the questionnaires in this study includes auditors working in private audit firms and the Iran Auditing Organization. Data on auditor-client interest alignment, public interest protection, and independence were collected using the Barrainkua & Espinosa-Pike (2017) questionnaire, while auditor post-materialism was assessed through the Giacalone & Jurkiewicz (2004) questionnaire. A total of 309 completed questionnaires were collected in 2022, and structural equation modeling was deployed for data analysis.

Accounting and Auditing Review, 2025

Accounting and Auditing Review, 2024