EXAMINING THE RELATIONSHIP BETWEEN THE AUDIT COMMITTEE, THE INCENTIVE SYSTEM OF MANAGEMENT AND THE AUDIT FEES OF COMPANIES IN IRAN
Abstract. The purpose of this study is to investigate the relationship between audit committee,
management incentive system, and audit fees of companies in Tehran Stock Exchange, of which 69 were selected as a sample during the years 2012 to 2014, according to the systematic elimination rule. This research is applied in terms of purpose and is quasi-experimental in terms of research method. According to the results, the Flimer method is the used pool method. Also, hypothesis testing was performed using multivariate linear regression model. Also, hypothesis testing was performed using multivariate linear regression model. The results of the hypotheses show that there is a significant relationship between the independence, the size and expertise of the audit committee and audit fees, but there is not a significant relationship between the audit committee experience and the incentive system of management, which is derived from the remuneration, and audit fees.
Keywords: Audit Committee, management incentive system, audit fees.
Ebrahimi, Seyyed Kazem, Payvandi, Mahmoud, Fakharmanesh, Mohammad Reza (2014). Investigating the
Effect of Corporate Ownership Structure on Audit Fees and Opinion of Auditors of Independent Companies,
Financial Accounting Quarterly, Sixth Year, No. 24, pp. 78-59.
Beheshtian (2001). The Impact of the Audit Committee on Independent Auditors, Internal Controls and
Financial Reports. Master's Thesis, Allameh Tabataba'i University.
Rahimian, Nizamoddin (2003). The role of the future audit committee. Unpublished article, Tehran: 5-1.
Rajabi, R. And Mohammad Khoshui, H. (2008). Agency fees and pricing of audit services. Accounting and
Auditing Reviews, 53 (3): 52-35.
Sajjadi, Hossein and Zarezadeh Mehrizi, Mohammad Sadeq (2011). Investigating the relationship between
managers' remuneration plans and the economic performance evaluation criteria in companies listed in Tehran Stock
Exchange. The Journal of Financial Accounting Research, Third Year, No. 4, pp. 54-41.
Sajjadi, Seyyed Hossein, Hajizadeh, Saeed and Nick Kar, Javad (2012). Impact of agency costs and
financial reporting quality on the investment risk of bourse companies. Accounting and Auditing Reviews, Volume
, Issue 3, 42-21.
Sarmad, Zohreh, Bazargan, Abbas, Hejazi, Elaheh (2013). Research Methods in Behavioral Sciences,
Twenty-Fifth Edition, Tehran, Publishing House
Seifi, Saeede (2005). Examining the relationship between the audit committee and the use of internal audit
work as a management education and their impact on the independence and neutrality of internal audit. Master's
Thesis. Al-Zahra University
Alawi, h. Robaty, M. Yousefi Asl, H (2012). Agency issue and pricing of independent audit services based on a free cash flow hypothesis. Accounting and Auditing Reviews, 19 (2): 122-97.
Alawi Tabari, Seyyed Hossein, Rouhollah Rajabi and Mansoureh Shahbazi (2011). The Relationship between Management System and Independent Audit Fees, Accounting Knowledge, Year 2, No. 5, pp. 75-101.
Mousavi, Seyyed Alireza and Fatemeh Daroughe Hazrati (2011). Investigating the relationship between free cash flow and audit fees in companies listed in Tehran Stock Exchange. Scientific and Research Journal of Accounting, Third Year, No. 10, p. 141. 173.
Mehrani, S., and Jamshidi Avanaki, K. (2011). Effective factors in determining audit fees. Official
Accountant Monthly, 1 (13), 60-78.
Nikbakht, M. T., M. (2010). Examining the Factors Affecting Audit Fees. Quarterly journal of financial
accounting research, 2 (2): 132-111.