Journal of Iranian Accounting Review

Journal of Iranian Accounting Review

Examination of the Effect of Conditional and Unconditional Conservatism on Auditor's Opinion in Companies Listed in Tehran Stock Exchange

Document Type : Original Article

Authors
Saeed Samaei Rahni
Simin Poursasan
M.A. in Accounting, Ferdowsi University of Mashhad, Mashhad, Iran
10.22055/jiar.2019.20555.1087
Abstract
The present study examines the effect of conditional and unconditional conservatism on the auditor's opinion in the companies listed in Tehran Stock Exchange. For this purpose, 87 companies were surveyed during the period from 2009 to 2014. In this research, the conditional conservatism was assessed by two Khan and Watts and Ahmad and Dolman criteria and Givoly and Hayn and Ahmad and Dolman criteria were used to measure the unconditional conservatism. The results of the study of the relationship between conditional conservatism and the auditor's opinion show that there is no significant relationship between conditional conservatism and modifying the auditor's opinion. On the other hand, based on the results of the study on the relationship between non-conditional conservatism,following Ahmad and Dolman's model and the auditor's opinion, it can be said that there is a significant negative relationship between unconditional conservatism and the auditor's opinion; in other words, by increasing unconditional conservatism, the possibility of offering modified opinion decreases.
Keywords
Conditional Conservatism
Unconditional Conservatism
Auditor's Opinion
Logistic Regression
Journal of Iranian Accounting Review
Volume 5, Issue 19
Summer 2018
Pages 93-112