An investigation of the Iranian audit firms' transparency: evidence from an Islamic context.

Purpose: This study aims to investigate factors that drive or deter audit firms (AFs) from disclosing audit quality (AQ) information to stakeholders in Iran. Furthermore, information items that should be contained in their disclosures are examined. Design/methodology/approach: The study followed an interpretive approach. In this regard, 21 semi-structured and face-to-face interviews were conducted to explore the viewpoints of audit partners and investment managers. Interviewees were selected by snowball sampling method. The transcripts of audio records were prepared, and a thematic perspective was applied to evaluate transcriptions. Findings: Participants' interpretations indicate that certain factors, such as signaling to stakeholders, active audit committees and investor demand, promote transparency among Iranian AFs. Nonetheless, this inclination is deterred by some concerns, including poor AQ, lack of financial resources, lack of legal enforcement, fear of raising stakeholders' expectations, inactive professional associations and contextual factors which should be addressed. Interviewees believe five items should be contained in AFs' disclosures to enhance transparency. Practical implications: This study contributes to recognizing factors explaining AFs' behavior in the context of an Islamic country. Furthermore, the type of disclosure that should be contained can provide good insight for standard setters or oversight bodies. Originality/value: The semi-structured interviews shed light on the contextual factors that influence transparency within the accountancy profession, either enabling or hindering it. Additionally, it is crucial to consider each country's unique characteristics when determining the disclosure items in transparency reports. [ABSTRACT FROM AUTHOR]