Identifying the Consequences of Non-Compliance with Accounting Standards in Tax Auditing
Keywords:
Auditors, auditing standards, audit quality, financial statements, tax systemAbstract
The significance of taxation in achieving the annual budget revenue targets necessitates the reform of tax system processes and highlights the inconsistencies between tax auditing practices and accounting standards. The need to address this issue stems from the divergence between the principles governing financial accounting and tax accounting, which leads to discrepancies between accounting profit and taxable income, thereby creating complications for corporate accountants and tax auditors. According to the conducted review, a comprehensive study on the consequences of non-compliance with accounting standards in Iran's tax auditing has not been undertaken. Furthermore, prior research has not addressed the role of accounting standards in the tax auditing process in Iran. Therefore, the present study, with an emphasis on Iranian accounting standards, seeks to identify the consequences of disregarding accounting standards in Iran's tax auditing system. The research method employed is descriptive-analytical and falls within the domain of applied research. In descriptive research, the researcher selects a population or sample to describe or explain phenomena, their relationships, and the impact of variables on each other. Applied research is conducted for a specific group, organization, or region. Accordingly, this study adopts a descriptive-analytical method within applied research. A feedforward neural network alongside the bat algorithm is utilized for prediction purposes. The findings indicate a significant inverse relationship between non-compliance with auditing standards and audit quality metrics. This implies that adherence to auditing standards in financial statements by auditors leads to increased qualifications in audit reports, inconsistency and lack of uniformity in audit reporting, reduction in the scope of professional judgment, diminished reliability of audit reports, increased audit completion time, and inconsistency in auditors' responses to identified deficiencies.
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Copyright (c) 2025 Mohammad Alizadeh Ahvazi (Author); Hushang Amiri (Corresponding author); Shahram Chaharmahali (Author)
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