The Effect of Unusual Tone of the Annual Report on Audit Quality Based on Quality Input Indicators

Document Type : Original Article

Authors
Yousif Mashkoor Kadhim Al- Ghanimi 1
Abdul Reza Mohseni 2
Majid Abdolhossein Hatef Al-Maryani 3
Afsaneh Soroushyar 4
1 PH.D Student Department of Accounting, Isf.C. Islamic Azad University, Isfahan, Iran
2 Associate Professor, Department of Accounting, Bu.C. Islamic Azad University, Bushehr, Iran
3 Dr. Al-Qadisiyah Community, all administration and economics
4 Associate Professor, Department of Accounting, Isf.C. Islamic Azad University, Isfahan, Iran.
10.22034/jmaak.2025.78591.4565
Abstract
This study examines the impact of tone management in the annual report of the board of directors regarding the company's activities and general status on audit quality, based on input- oriented quality indicators. The research sample consists of 40 companies listed on the Iraqi Stock Exchange during the period from 2016 and 2023. The required data were collected from the official website of the Iraqi Stock Exchange, extracted using specialized software, and processed in the EXCEL environment. Data analysis and hypothesis testing were conducted using regression analysis via STATA version 12 software.
The analysis was carried out in three stages: first, descriptive statistics of the research variables were presented; the second, the research hypotheses were tested. the results of the hypothesis testing indicate that an abnormal tone in annual reports leads to an increase in audit workload, which causes delays in issuing audit reports and consequently results in higher audit fees.
Keywords
Tone management
Board of directors
Audit quality
Annual report
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