The Effect of The Common Auditor in The Supply Chain on Corporate Tax Avoidance

Iranian Journal of Accounting, Auditing and Finance

مقالات آماده انتشار، پذیرفته شده، انتشار آنلاین از تاریخ 10 آبان 1403   

نوع مقاله: Original Article

شناسه دیجیتال (DOI): 10.22067/ijaaf.2024.89441.1488

نویسندگان

Alireza Rahrovi Dastjerdi^* ؛ Hamed Sohrabiani

Department of Accounting, University of Isfahan, Isfahan, Iran.

چکیده

A common auditor refers to a situation where a company and at least one of its major clients are audited by the same auditing firm. The main objective of this article is to address the question of whether the presence of Common auditors has an impact on tax avoidance activities within a company. It also examines how auditor industry expertise, auditor economic dependence on the client, and industry concentration affect this relationship. Using a sample of 150 companies from 2013 to 2023 and testing hypotheses with OLS regression, the study found that common auditors within a supply chain increase tax avoidance. However, while auditor industry expertise does not affect this relationship, auditor economic dependence and industry concentration weaken the positive impact of common auditors on tax avoidance. These findings enhance the understanding of the complex relationship between common auditors and clients and offer valuable insights for policymakers, standard-setters and professionals in auditing and taxation to more effectively address issues related to common auditors and tax avoidance.

کلیدواژه‌ها

Common Auditor؛ Tax Avoidance؛ Auditor' s Expertise؛ Auditor' s Economic Dependence؛ Concentration in The Industry