THE IRANIAN ACCOUNTING AND AUDITING REVIEW
Year:2024 | Volume:31 | Issue:4|Papers Count:7

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.     Results Results indicated a positive relationship between post-materialism and independence. The relationship between post-materialism and public interest protection was also found positive. Conversely, there was a negative relationship between post-materialism and the alignment of auditor and client interests. Moreover, no relationship was found between public interest protection and the alignment of auditor and client interests. A negative relationship was observed between independence and the alignment of auditor-client interests. Conclusion The findings suggest that post-materialism influences individual behavior, leading post-materialist or transcendental auditors to avoid unethical actions and personal gain. Given that the auditing profession aims to protect the interests of third parties relying on the auditor's opinion, auditors with strong post-materialist views tend to prioritize non-materialistic goals, leading to a decreased alignment with client interests. Thus, they are less inclined toward unethical practices and personal interests, actively working to protect the public interest. These auditors believe that unethical actions undermine their independence, which is a core and indispensable attribute of auditors in providing assurance services, including the auditing of financial statements. In other words, auditors must avoid any dependence on the client to render an impartial and unbiased opinion on financial statements.

ObjectiveThe 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.MethodsThe 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.ResultsAfter testing the hypotheses, the results showed that rotating audit partners led to an increase in the disclosure of internal control weaknesses. In contrast, longer audit partner tenure was associated with a decrease in financial statement restatements and the disclosure of internal control weaknesses.  ConclusionThe current research contributes to the existing literature on audit firm partner turnover and its relationship with audit quality indicators in companies. It sought to provide valuable evidence regarding the implications of audit firm partner turnover and tenure, shedding light on how these factors influence financial reporting standards. Based on the theoretical foundations, the research findings indicate that when audit partners at a firm change frequently, there may be signals to investors that the company wishes to manipulate its financial reports. This could be due to the new auditor's lack of familiarity with the company. Additionally, the research findings suggest that as the turnover of audit firm partners increases, there may be a higher likelihood of disclosing internal control weaknesses, which can be seen as a measure of audit quality. Conversely, when a partner has been with an audit firm for a longer period, there may be fewer financial restatements and internal control weaknesses, indicating higher audit quality. However, when both the partner's tenure and the firm's change cycle increase at the same time, there may not be a significant change in accruals, financial restatements, and disclosure of internal control weaknesses as measures of audit quality. This issue may stem from the fact that many auditing institutions in Iran tend to rely heavily on the previous year's worksheets and documentation prepared by prior auditors when conducting their audits. The practice is often used for audit planning, budgeting, and gathering necessary information for the current year's audit.

ObjectiveThis 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.MethodsThis 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.ResultsThe findings of this research indicate that, from the professors' perspective, the desirability of all the elements of the master's curriculum in auditing—including objectives, learning activities, content, teaching strategies, time, place, evaluation, grouping, and educational materials and resources is at an average level. In contrast, from the students' perspective, the desirability of the elements related to learning activities, teaching strategies, and educational materials and resources is rated as inappropriate, while the desirability of the elements concerning goals, content, learning activities, time, place, grouping, and evaluation is at an average level. ConclusionThe results of the survey indicate that the quality of the Master of Auditing curriculum is unfavorable in all nine elements of internal curriculum quality and needs to be revised. Regarding the "goal" element, although the goal is clearly stated in this curriculum, there has not been enough attention paid to the simultaneous development of knowledge (theoretical topics) alongside skills (such as communication, problem-solving, decision-making, writing, teamwork, etc.) and attitudes (such as creativity, innovation, social responsibility, and adherence to ethical principles). The focus of this program has primarily been on increasing the "knowledge" of the students. On the other hand, while "the content of this curriculum" is appropriate to the discipline's structure, it does not include the latest scientific theories and findings. Additionally, in terms of the time element, the hours (number of units) allocated to the courses do not align with the content of these courses. Some courses, such as management accounting and accounting theories, are allocated more hours than necessary and would be better replaced with new courses that address the changing needs of society and the labor market, such as big data analysis, advanced statistics, advanced specialized auditing software, computer and artificial intelligence-based auditing, econometrics, audit research, and internships. Furthermore, this program is not designed in a way that requires professors to use new and active teaching methods. Although the textbooks and resources mentioned in this curriculum are easily accessible to students, they are not up to date. The quality of learning in this curriculum is also lacking, which is partially rooted in inadequate attention to teaching strategies. Additionally, the grouping of learners is neglected in this curriculum; however, with the development of social networks and new technologies, it is possible to utilize available resources to enhance the quality of this element as well as educational equity. Finally, considering the unfavorable quality of the student evaluation methods in this curriculum, it seems that continuous assessments and other modern evaluation methods should be considered by the reviewing authorities of this curriculum.

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. Results According to the research findings, soft skills, outcome culture, and information systems (among the contingent variables) affect the implementation of strategic management accounting techniques. Furthermore, innovation culture and outcome culture do not moderate the relationship between soft skills and the implementation of strategic management accounting techniques, whereas information systems do. The findings showed that the soft skills of management accountants mediated the relationship between innovation culture and the implementation of strategic management accounting techniques. This means that innovation culture does not have a direct impact on the implementation of strategic management accounting techniques; however, it has an indirect effect through the soft skills of management accountants. In addition, outcome culture had only a positive direct influence on the implementation of strategic management accounting techniques. Although outcome culture had a significant effect on the soft skills of management accountants, its indirect impact on the implementation of strategic management accounting techniques was not significant through the interaction of soft skills with management accountants. Furthermore, the findings showed that firm size was the only control variable that had a significant positive effect on the implementation of strategic management accounting techniques. Conversely, the other three variables (i.e., competition, perceived environmental uncertainty, and product diversity) had no significant effect on the implementation of strategic management accounting techniques. Finally, contingent and control variables were able to explain 65% of the changes in the dependent variable. Conclusion The present study aimed to contribute to the literature on contingency theory by identifying factors that affect the implementation of strategic management accounting techniques and examining the role of management accountants in this process. Furthermore, this research offered insights into how three variables management accountants' soft skills, the quality of information systems, and organizational culture impact the implementation of strategic management accounting techniques by considering more complex relationships. Additionally, management accountants need to interact with other stakeholders to enhance their role in the design and implementation of these techniques. Finally, the findings of this research can contribute to the effective implementation of strategic management accounting techniques.

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.     Results The findings of this study indicate that the effective dimensions of new technologies on the accounting profession are categorized into 64 components across 12 categories. After processing the data using the meta-synthesis analysis and Shannon Entropy, it was determined that factors such as increased accuracy, improved comprehensiveness and precision of reporting, reduction of redundancy, and accurate data analysis are of greater importance among the identified components. Conversely, environmental impacts, including air pollution, reduced energy consumption, and decreased greenhouse gas emissions, are of the least importance. Based on the SWARA method, time and cost management ranked highest among the categories. Conclusion According to the research findings, emerging technologies have significantly increased the efficiency and improved the quality of accounting processes. These technologies have transformed accountants from data entry operators into analysts and, by simplifying tasks, have led to greater employee productivity. Furthermore, by providing immutable, secure, and reliable data, they help reduce fraud and manipulation while improving the quality of financial reporting. This, in turn, enhances management’s perspective and supports more informed decision-making. This research offers a fresh perspective enabling accountants and organizational managers to take more strategic and informed steps toward the development and sustainability of their organizations.

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.     Results Three main themes—obstacles and challenges, benefits and opportunities, and solutions and procedures—were identified based on the opinions and views of the graduates for improving public sector accounting education. In addition, three different sub-themes were extracted for each of the main themes. In total, 36 distinct narratives were identified from the observations of the graduates regarding the primary obstacles to public sector accounting education. Most narratives related to the functions of trustee authorities, including universities, other higher education institutions, the accounting profession, and the government itself along with its subordinate institutions. Additionally, 16 narratives about the benefits of public-sector accounting education were identified, most of which pertained to the usefulness of the public sector for society. Finally, 22 strategies and procedures were proposed to enhance the quality of public sector accounting education, the most important of which are related to educational and academic content. Conclusion The findings indicate the important role of the government and its subordinate institutions, including the Ministry of Science, in addressing the obstacles and challenges of public sector accounting education, particularly through the revision of the approved curriculum for public sector accounting. According to the participants' preferences for practical and applied issues, as well as interdisciplinary topics, it is necessary to increase the emphasis on these subjects in the educational content provided by universities. Additionally, professors should give greater importance to these topics in their teaching. This goal can be achieved through the tripartite cooperation of institutions active in the public sector, the accounting profession, and universities to prepare practical and localized educational content for all approved courses in the field of public sector accounting, taking into account the conditions governing Iran's governance environment.

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. Results The research results indicated that the research model for developing the theoretical framework of management accounting could be classified into 176 concepts and 69 components. As a result, 13 causal conditions, 14 contextual conditions, 14 strategies for model development, 10 intervening conditions, and 18 consequences for the development model of the theoretical framework of management accounting were listed. Conclusion Based on the research findings, it can be concluded that management accounting should have a theoretical framework. However, this framework is not universal; rather, each organization, due to its unique nature and functions, should use the theoretical framework of management accounting relatively, based on its informational needs. The present research contributes to the development of new concepts and principles, the improvement of existing theoretical foundations, and the enhancement of scientific knowledge in the field of management accounting from a theoretical perspective. Practically, this research leads to improved managerial decision-making, increased efficiency and quality of financial information, enhanced roles for management accountants, and facilitated organizational communications. Furthermore, the development of the theoretical framework of management accounting has multiple impacts beyond improving the comparability of accounting reports. Organizations can use the research findings to enhance their managerial decision-making, increase the quality and efficiency of financial information, and elevate the role of management accountants.