Effects of Short-Term Accruals on the Pricing of Audit Services

Abstract

This study investigates the relationship between short-term accruals and pricing of audit services in the Tehran Stock Exchange during the period 2009-2014 will be discussed. For this study, the 90 companies listed in Tehran Stock Exchange for the period was determined. To test study hypothesis by regression analysis using software integrated in all companies use EViews6 In this study to determine the audit fees were used for short-term accruals.

The dependent variable pricing study audit services to assess which of the four criteria, audit fees, the natural logarithm effort, the natural logarithm of the investment cost of the audit, the natural logarithm was used to increase the selling price. Also in this study, the control variables of the current debt ratio of short-term investments, financial debt ratio, return on assets, long-term financial leverage, the rate of depreciation expense, size, and variable operating loss was ambivalent.

The findings suggest that short-term accruals and effort spent on the remuneration of the auditors' audit and the audit contract gross profit and significant positive impact, but the impact on the auditor's fee when the investment is negative and significant. In this study, the control variables depreciation expense spent on trying the resort's auditors have a positive impact and meaning.

Keywords: short-term accruals, pricing of audit services, audit fees, effort, and money invested time auditor.