Identification of Non-Fragile Variables Affecting Tax Audit Quality

Abstract

The aim of the current research is to Identification of non-fragile variables affecting quality of tax audits, considering the environmental characteristics, conditions governing taxpayers and tax auditors. The present applied research was carried out in a period of 2012-2021 and using the data of 511 tax files of Mazandaran province. In order to present the model, first, through interviews with experts and a review of research literature, 64 factors affecting the quality of tax audits were identified in the form of three groups of characteristics of taxpayers, tax auditors and macro factors, then the relevant data were entered into BMA, TVP- DMA and TVP-DMS models. Based on the error rate, the BMA model had the highest accuracy. After estimating the model, 17 main indicators in tax auditors(the tax audits quality of past period, work experience, individual or group handling, auditor expertise, auditors' use of information, auditor's workload, conducting audits in several tax sources , dealing with related parties, the existence of an unofficial invoice, using other people's business card); Intra-company variables(accrued earning management; debt ratio) and macroeconomic variables(inflation, unofficial exchange rate, tax complexity, tax fairness, business environment index and social capital index) were identified as influencing variables. Based on the results, it is quite evident that tax audit quality has a multidimensional nature. Considering the lack of comprehensive research in the field of tax audit quality in this regard, a multifaceted model has been designed; It provides a comprehensive view of the quality of tax audit.

Keywords

• audit quality
• tax payer
• tax auditor
• macroeconomics
• bayesian averaging