Ownership structure and auditor

Ownership Structure and Auditor

Mehyar El Saadatmand

Abstract

One of the problems that banks face today is the change of auditors. Bank audits are usually conducted according to predetermined procedures and are carried out in consecutive years according to that procedure. The change in the audit pattern is influenced by various factors, one of the most important of which is the change in technology and the use of new software. When auditors change their audit pattern, bank financial managers are faced with new demands from auditors. In some cases, these demands are different from the strategic policies of managers. In some cases, the change in the auditor pattern causes them to be replaced by bank managers. In this study, two main hypotheses were examined. The results of the first hypothesis of the study showed that state-owned banks are more likely to hire a high-quality auditor than private banks. Finally, the results of the second hypothesis of the study showed that state-owned banks pay higher audit premiums for high-quality auditors compared to private banks. 

Keywords: Ownership Structure, Auditor Selection, Banks and Panel Data