The pricing of audit services: evidence from Iran

Accountability is an essential process in institutionalizing democracy. It seems that one of the main ingredients of economical accountability is Auditing. Auditing stands in the monitoring aspect of every organization. In spite of audit’s development-because of its necessity–we cannot scientifically say how financial audit fees are determined in Iran. For this purpose, we tested in the present paper, the factors influencing financial audit fees in Iran. Required data were collected from the financial statement listed firms and through interviews with their financial managers for a six years period (2007-2012). The researchʹs statistical method is correlation analysis through panel data and Eviews software was used to test the research hypothesis. The research findings showed that variables such as firmʹs size, complexity of firmʹs activities, kind of audit firm (public or private) and inflation rate have statistically a significant relation with the financial audit fees, but the variables like audit risk, education and experience of clientʹs financial manager have no significant relation with the dependent variable (financial audit fees).