An investigation of the Iranian audit firms’ transparency: evidence from an Islamic context
Journal of Islamic Accounting and Business Research
ISSN: 1759-0817
Article publication date: 21 August 2023
Issue publication date: 22 January 2025
Abstract
Purpose
This study aims to investigate factors that drive or deter audit firms (AFs) from disclosing audit quality (AQ) information to stakeholders in Iran. Furthermore, information items that should be contained in their disclosures are examined.
Design/methodology/approach
The study followed an interpretive approach. In this regard, 21 semi-structured and face-to-face interviews were conducted to explore the viewpoints of audit partners and investment managers. Interviewees were selected by snowball sampling method. The transcripts of audio records were prepared, and a thematic perspective was applied to evaluate transcriptions.
Findings
Participants’ interpretations indicate that certain factors, such as signaling to stakeholders, active audit committees and investor demand, promote transparency among Iranian AFs. Nonetheless, this inclination is deterred by some concerns, including poor AQ, lack of financial resources, lack of legal enforcement, fear of raising stakeholders’ expectations, inactive professional associations and contextual factors which should be addressed. Interviewees believe five items should be contained in AFs’ disclosures to enhance transparency.
Practical implications
This study contributes to recognizing factors explaining AFs’ behavior in the context of an Islamic country. Furthermore, the type of disclosure that should be contained can provide good insight for standard setters or oversight bodies.
Originality/value
The semi-structured interviews shed light on the contextual factors that influence transparency within the accountancy profession, either enabling or hindering it. Additionally, it is crucial to consider each country’s unique characteristics when determining the disclosure items in transparency reports.
Keywords
Acknowledgements
Corrigendum: It has come to the attention of the publisher that the article Asnaashari, H. and Safarzadeh, M.H. (2023), “An investigation of the Iranian audit firms’ transparency: evidence from an Islamic context”, Journal of Islamic Accounting and Business Research, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JIABR-01-2023-0003, did not include Behzad Beygpanah as an author. Our guidelines make it clear that anyone who made a significant contribution to the article must be included as an author. Behzad Beygpanah has been added as an author of this article in both the published version and metadata. Mohammad Hossein Safarzadeh and Hamideh Asnaashari sincerely apologize for this mistake.
Citation
Asnaashari, H., Safarzadeh, M.H. and Beygpanah, B. (2025), "An investigation of the Iranian audit firms’ transparency: evidence from an Islamic context", Journal of Islamic Accounting and Business Research, Vol. 16 No. 2, pp. 249-272. https://doi.org/10.1108/JIABR-01-2023-0003
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited