Developing a Model for Improving Tax Auditing Quality in Iran

Document Type : Original Article


1 Department of Accounting, Marand Branch, Islamic Azad University, Marand, Iran

2 Department of Accounting, Sofian Branch, Islamic Azad University, Sofian, Iran

3 Department of Accounting, Bostanabad Branch, Islamic Azad University, Bostanabad, Iran


Given the importance of taxes and tax revenues in the country's economic development, it is crucial to provide a comprehensive model for tax auditing quality. The primary purpose of this study is to design a comprehensive model of tax auditing quality through a mixed method. The qualitative part approach is based on data-based theory. Data collection instruments were semi-structured interviews with 20 partners of auditing firms, managers of the Iranian Association of Certified Public Accountants, and tax officials selected by snowball sampling and content analysis methods. The axial category of the tax auditing quality model was developed, and the final model was presented according to the causal conditions, contextual conditions, intervening conditions, strategies and consequences. In the quantitative part, research hypotheses were developed, and a questionnaire was designed to test them. The questionnaires were filled by 335 experts who did not participate in the qualitative part, and the hypotheses were tested using the structural equation method. Auditing Quality improvement model was developed, which included two major parts, including auditing service providers and auditing services recipients by discovering and identifying strategic factors, intervening (contextual) conditions and their implications along with contextual conditions.


Main Subjects

  1. Arab, R. and Jamal Livani, F. (2019), The Rotation of the Institute of Auditing and Tax Avoidance: The Mediating Role of Audit Quality, Second National Conference on Basic Research in Management and Accounting. Tehran. Iran (In Persian).
  2. Da Silva, F. P., Guerreiro, R. and Flores, E. (2019). Voluntary versus enforced tax compliance: the slippery slope framework in the Brazilian context.  International Review of Economics, 66(2), pp. 147-180,
  3. Farmer, T. A. (1993). "Testing the Effect of Risk Attitude on Auditor Judgment Using Multiattribute Utility Theory", Journal of Accounting, Auditing & Finance, 8(1), pp. 91-110,
  4. Gaaya, S., Lakhal, N., and Lakhal, F. (2017). Does family ownership reduce corporate tax avoidance? The moderating effect of audit quality.  Managerial Auditing Journal, 32(7), pp. 731-744,
  5. Ghader Dadashzadeh A. (2019) Journal of Financial Accounting Knowledge, Vol. 204 No. 179,
  6. Harelimana, J. B. (2018). “ Effect of tax audit on revenue collection in Rwanda,  Global Journal of Management and Business Research. Available at: <
  7. Hauptman, L., Horvat, M., and Korez-Vide, R. (2014). “ Improving tax administration's services as a factor of tax compliance: The case of tax audit  Lex localis, Vol. 12 No. 3, pp. 481-501.
  8. Khwaja, M. S., Awasthi, R., & Loeprick, J. (Eds.). (2011). Risk-based tax audits: approaches and country experiences. World Bank Publications.
  9. Kanagaretnam, K., Lee, J., Lim, C. Y. and Lobo, G. J. (2016).  Relation between auditor quality and tax aggressiveness: Implications of cross-country institutional differences. Auditing: A Journal of Practice & Theory,  35(4), pp. 105-135,
  10. Kemme, D. M., Parikh, B. and Steigner, T. (2020). Tax morale and international tax evasion. Journal of World Business, 55(3), A. 101052.
  11. Kirana, I. G. A. M. I. and Ramantha, I. W. (2020). The Effect of Auditor Rotation, TIME Pressure, and Audit Tenure on Audit Quality with Auditor Specialization as Moderation Variable:(Empirical Study of Manufacturing Companies Listed on the Indonesia Stock Exchange in 2014-2018). International research journal of management, IT and social sciences7(3), pp. 126-136,
  12. Jahnke, B. and Weisser, R. A. (2019). “How does petty corruption affect tax morale in Sub-Saharan Africa?”,  European Journal of Political Economy, 60,  (21), A.  101751,
  13. Lai, K. W. (2019). Audit report lag, audit fees, and audit quality following an audit firm merger: Evidence from Hong Kong”, Journal of International Accounting, Auditing and Taxation36(6), P. 100271,
  14. Lestari, N. and Nedya, S. (2019). The effect of audit quality on tax avoidance. In International Conference On Applied Science and Technology 2019-Social Sciences Track (iCASTSS 2019). Atlantis Press,    72-76,
  15. Nyarkpoh, M. F. (2018). Trust in Government and Tax Compliance: An Empirical Evidence from Ghana. Doctoral dissertation, University Of Ghana.
  16. Ozili, P. K. (2020). Tax evasion and financial instability. Journal of Financial Crime, 27 (2), pp. 531—539,
  17. Strauss, A. L. (1987). Qualitative analysis for social scientists. Cambridge university press. USA.
  18. Strauss, A. Corbin, J. (1990). A Basics of Qualitative
    Research Theory Methods. Beverly Hills, CA. Sage.
  19. Sabzalipour, F. and Darabi, Z. (2020). Investigating the moderating role of audit quality on the relationship between CEO's remuneration and tax avoidance, Third Conference on Accounting and Management.Iran (In Persian).
  20. Taj al-Dini, A. (2020). Investigating the mediating role of capital protection in the relationship between audit quality and tax payment in companies in Bushehr Industrial Park. Sixth National Conference on Applied Research in Accounting Management and Healthy Economy in the Bank.Tehran.Iran.(In Persian)
  21. Taheri, M.,  Jahangirnia, H., khanmohammad, M. and Gholami Jamkarani, R. (2020). Developing the model of tax audit quality in Iran's value-added tax system. Journal of Management Accounting and Auditing Knowledge, 9(34), pp. 277.298.
  22. Van Tendeloo, B. (2007).  Audit quality and tax-induced earnings management in UK private firms. Workinig papers No. 2007004.