Deviation from Industry Norms, Financial Restatements and Audit Opinion

Iranian Journal of Accounting, Auditing and Finance

مقاله 5، دوره 9، شماره 2 - شماره پیاپی 31، مرداد 2025، صفحه 77-92   

نوع مقاله: Original Article

شناسه دیجیتال (DOI): 10.22067/ijaaf.2025.44116.1367

نویسندگان

Ebrahim Baramzadeh¹؛ Seyed Ali Vaez^{* 2}؛ Ghasem Rekabdar³

¹Department of Accounting, Khorramshahr International Branch, Islamic Azad University, Khorramshahr, Iran.

²Department of Accounting, Shahid Chamran University, Ahvaz, Iran.

³Department of Mathematics, Abadan Branch, Islamic Azad University, Abadan, Iran.

چکیده

While prior research examines the internal and external factors that influence financial statement restatement and external auditor’s opinion, there is limited research on the impact of deviation from industry norms (DIN) on financial restatements and audit opinion. This study attempts to fill this gap by examining whether and how DIN affects financial restatements and audit opinion. Industry-level risk factors calculate DIN, including annual stock returns, daily return variations, financial distress and leverage. Using a sample of Iranian listed firms (194 firms) between 2014 and 2021, this study documents a significant and positive relationship between DIN with financial restatements and audit opinion, suggesting that firms with higher DIN have higher restatements and are more likely to receive a modified opinion. This paper offers the first empirical research about the consequences of DIN on the restatements and audit opinion at the international level, going beyond the role of firm‐, auditor‐, and governance‐specific characteristics.

کلیدواژه‌ها

Audit Opinion؛ Deviation from Industry Norms؛ Financial Restatements؛ Firm Risk

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