The Impact of Environmental Pollution on Audit Quality

Document Type : Review Paper

Authors

1 Assistant Professor, Department of Accounting, osku Branch, Islamic Azad University, osku, Iran

2 Departmet of Accounting, Sofian Branch, Islamic Azad University

Abstract

Abstract
Purpose: following the separation of company management from their ownership and the making of agency issues, as well as increasing information asymmetry between managers and owners, environmental patterns and social responsibility have been neglected. The aim of this study is to study an aspect of the economic consequences of the status of auditing services in Iran to investigate the impact of environmental pollution on the quality of auditing in companies listed on the Tehran Stock Exchange.
Methodology: In this regard, 110 companies were selected for the period 2004-2019. The purpose of applied research and its methodology is post-event. The results showed that increasing air pollution increases optional accruals.
Findings: The findings also showed that air pollution increases the audit fee.
Result: In fact, companies that do not follow the environmental model increase the conflict between different groups of stakeholders.
Originality: Therefore, auditors, as supervisors, require more time to audit, which in turn increases the time it takes to process the organization's information and records and consequently increases the audit fee.

Keywords

References

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Journal of Accounting and Social Interests
Volume 12, Issue 3 - Serial Number 46
September 2022
Pages 183-200

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History

  • Receive Date: 29 November 2021
  • Revise Date: 13 July 2022
  • Accept Date: 16 July 2022

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