International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

Developing a Corporate Tax Model Based on Audit Quality: An Approach towards Financial Transparency and Regulatory Compliance

Document Type : Original Article

Authors
Fatemeh Hamzehnezhad 1
Hojjatallah Salari 2
Ali Amiri 2
Davood Khodadadi 2
1 PhD student , Department of Accounting and Finance, BA.C., Islamic Azad University, Bandar Abbas, Iran.
2 Department of Accounting and Finance, BA.C, Islamic Azad University, Bandar Abbas, Iran.
10.22034/ijfma.2025.78564.2265
Abstract
This study develops and presents a corporate tax model based on audit quality. The proposed model aims to enhance financial transparency and reduce tax evasion. Additionally, it seeks to gain investor confidence and facilitate compliance with tax regulations. Audit quality refers to the accuracy, comprehensiveness, and reliability of audits, ensuring that companies' financial statements align with reality and adhere to accounting principles and standards. This quantitative study employed a descriptive survey method with a parametric sample. The statistical population comprised 152 experts in accounting, auditing, taxation, and finance, as well as individuals involved in accounting and tax affairs. Data were collected via a questionnaire, validated through prior use in similar organizations, with reliability confirmed via Cronbach’s alpha. The corporate tax model was analyzed through four dimensions: explanatory tax components, causal conditions, underlying conditions, and intervening conditions. Results indicated that all four dimensions significantly influence audit quality. The findings underscore that enhanced audit quality can substantially improve a nation’s tax and economic systems.
Keywords
Tax Evasion
Tax Discrepancies
Financial Statements
Accounting Standards
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