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International Journal of Management Science

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The Relationship between Independent Auditors and Receiving Financial Facilities

International Journal of Management Science
Vol.1 , No. 4, Publication Date: Sep. 22, 2014, Page: 58-64

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Authors

[1]	Mehrdad Sadr Ara, Faculty of Management, University of Tehran, Iran.
[2]	Hadi Hamdam, Department of Accounting, Islamic Azad University, Germi Branch, Iran.
[3]	Seyed Mahdi Parchini Parchin, Faculty of Economic Science, Mazandaran University, Babolsar, Iran.
[4]	Abbas Bagherian Kasgari, Department of Economics, Babol Branch, Islamic Azad University, Babol, Iran.

Abstract

Trust in relationship is a concept that recently has been studied from different perspectives. Generally, in evaluating customers, creditors and stakeholders pay special attention to certain factors of which audited financial statement is likely the most important one. In this research, we conducted a survey to test our hypotheses. In order to carry out the survey a questionnaire was designed and responses were analyzed using Spearman correlation test and structural equation modeling. The respondents consist of all credit managers in Isfahan private banks. A sample size of 106 questionnaires was received and data were analyzed. The results reveal that the auditors’ reputation and receiving unqualified audit opinion have a positive and significant relationship with credit managers' trust. In addition, the results of structural equation modeling show that credit managers’ trust is highly influenced by factors that affect independent auditors.

Keywords

Trust, Creditors, Independent Auditing

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