The Effect of Unusual Tone of Annual Report on Audit Quality Based on Quality Output Indicators in Companies Member

Document Type : Original Article

Authors
Yousef Mashkoor Kazem Elghanimi 1
Abdolreza 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 Assistant Professor, Department of Accounting, Bu.C., Islamic Azad University, Bushehr, Iran
3 Assistant Professor, Department of Management, Al-Qadisiyah University, Qadisiyah, Iraq
4 Associate Professor, Department of Accounting, Isf.C., Islamic Azad University, Isfahan, Iran
10.22034/jik.2025.78592.4777
Abstract
This study investigates the impact of abnormal tone annual report on audit quality, focusing specifically on outcome –based indicators such as the restatement of financial statements in companies listed on the Iraqi Stock Exchange. The samples consists of 40 publicly listed companies over the period from 2016 to 2023. The required data were collected from the official website of the Iraqi Stock Exchange and the collection software, the processed using EXCEL spreadsheets. Subsequently, regression analysis was conducted using STATA version 12 to test the research hypotheses. the findings indicate that contrary to expectations , auditors do not appear to perceive changes in the abnormal tone of annual reports .if auditors were sensitive to such changes ,one would expect to observe an increase in adverse audit opinions and a decrease in financial statement restatements. However, empirical evidence does not support such a relationship.
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