The effect of board characteristics on modified audit opinion

Document Type : Original Article

Authors

1 Assistant Professor of Accounting, Saveh Branch, Islamic Azad University, Saveh, Iran

2 M.A. in Accounting, Arak Branch, Islamic Azad University, Arak, Iran

3 M.A. in Accounting, Nasser Khosrow Institute of Higher Education, Saveh, Iran

Abstract

The board of directors, represented by the company's shareholders, supervises and controls the company. In the governance of the company, which is efficient and responsible for all those who communicate with the stakeholders, it is the director who is responsible for coordination and ensures the existence of culture and proper atmosphere in the system. The purpose of this research is to study the effect of the characteristics of the board of directors on the modified audit opinion of the company. The output of this research is limited to the years 2013-2020, and this research has one main hypothesis and four sub-hypotheses. The purpose of the research is applied research, and the research method is correlational in nature. The research was done in inductive analogical reasoning and panel elimination was used to analyze the hypotheses. The results of the research hypothesis test showed that the size of the board of directors has a positive and significant effect on the modified audit opinion of the company. Board independence has a negative and significant impact on the modified audit opinion. However, the impact of tenure and gender diversity on the modified audit opinion is not significant.

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References

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History

  • Receive Date: 27 August 2023
  • Revise Date: 13 September 2023
  • Accept Date: 14 October 2023

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