The relationship between audit components and audit market adaptability

Abstract

Purpose

This study aims to study the relationship between audit components and collusion in the audit market.

Design/methodology/approach

The statistical population of the study includes 130 listed firms on the Tehran Stock Exchange from 2012-2017. The data tested using multivariate regression.

Findings

The findings of the study indicate that there is a positive and significant relationship between Rank A audit firms, competition and audit fees and audit market adaptability. The relationship standard fees and audit market adaptability, however, is negative and significant. Moreover, the results of the study show that there is no significant relationship between opinion shopping, type of audit report, audit market concentration, and agency costs with audit market adaptability.

Originality/value

The current study fills the gap in this area, and the results of the study may give direction to researchers and policy makers.

Citation

Salehi, M., Saravani, M. and Rouhi, S. (2020), "The relationship between audit components and audit market adaptability", Journal of Financial Crime, Vol. 27 No. 3, pp. 835-853. https://doi.org/10.1108/JFC-03-2020-0035