Accounting and Auditing Research

Accounting and Auditing Research

The Effect of Corporate Social Responsibility Performance on the Type of Auditor and Audit Cost

Document Type : Original Article

Authors
Said Rasoul Hosayni 1
Rahman Rostapisheh 2
1 Assistant prof., department of accounting, faculty of humanity, university of Zanjan, Zanjan, Iran
2 Master of Auditing
10.22034/iaar.2024.196636
Abstract
Social responsibility is the process by which company managers exercise their responsibility to adapt to the interests of the organizational groups under their management. This social responsibility can affect the choice of auditor and audit cost. Therefore, the purpose of this study is to investigate the effect of corporate social responsibility performance on the choice of auditor and audit costs. To achieve this goal, the KLD index has been used in the calculation of corporate social responsibility. The statistical population of this research is Tehran Stock Exchange companies and from this population a statistical sample including 82 companies during the period 2011 to 2020 was selected. Hypotheses were tested using linear regression and with Eviwes software. The findings showed that the company's social responsibility performance does not have a significant effect on changing the auditor and leaving the auditing organization and selecting other institutions to audit the company, while the company's social responsibility performance has a significant effect on audit costs using (1) natural logarithm of audit cost and (2) the difference between the audit cost of this year and last year. Therefore, these findings indicate that the company's social responsibility performance does not have a significant effect on the auditor's choice.
Keywords
Corporate Social Responsibility
Choice of Auditor
Audit Cost
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Accounting and Auditing Research
Volume 16, Issue 61
Spring 2024
Pages 103-124