عنوان مقاله [English]
نویسندگان [English]چکیده [English]
This paper investigates the relation of managerial ability to audit fees and going concern opinions of some firms listed in Tehran Stock Exchange (TSE) from 1382 to 1392. In order to measure the managerial ability, the management scores defined by the two-stage DEA model of Demerjian et al. (2012) have been used. Moreover, audit fees and going concern opinions have been considered as audit risk. The sample consists of 1,034 firm-year observations from 94 unique firms. OLS and Logistic regressions have been used to test hypotheses. The results show that any increase in managerial ability decreases audit fees and likelihood of going concern opinion. Generally, the findings support the notion that the managerial ability is relevant to auditors’ decisions. This evidence is particularly important because there is a paucity of empirical evidence on the relation between managerial characteristics and auditors’ decisions.
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