Journal of value creating in Business Management

Abstract Abstract The purpose of this research is to investigate the value-creating factors in the professional relationship between the auditor and the employer in the auditing profession. The current research is applicative in terms of purpose, and quantitative in terms of execution method. The statistical population of the research includes 303 people, including financial experts, executive directors, auditors or legal inspectors, CEOs or members of the board of directors, university faculty members, and etc.; selected through a targeted sampling method. Data collection is by means of questionnaire. SPSS and PLS software were employed for data analysis. The results showed that the strategies used in the negotiations between the auditor and the employer can have an effect on the rotation or retention of the auditor. Also, the effect of the merger of audit institutions on the relationship between the auditor and the employer has been positive, and of course, the monopoly of the audit market can affect the quality of the relationship between the audit institution and the employer. In other words, the monopoly of the audit market by large institutions can be a serious threat to other institutions. Also, the value of GOF was obtained equal to 0.200, which indicates a good and moderate fit in the model. Extended Abstract Introduction During the past decades, the audit services market at the international level has witnessed many changes, one of the most important of which is the issue of marketing for credit service providers. The aforementioned changes in auditors' tendencies towards marketing mainly started after the decision of the US Supreme Court in 1977 AD. Auditors always try to maintain their independence in order to balance the interests of society and their personal interests. However, the personal interests of auditors require them to be able to maintain their employers in competitive conditions; of course, retaining the employer without compromising the professional characteristics of auditors such as independence, has been the subject of some researches (Mahdavi & Daryaei, 2017). Incentives such as entering new markets, improving research and development and obtaining new technologies, economic savings due to scale and globalization, the need for expertise in the industry due to the complexity of business owners' activities and maintaining or increasing market share, and finally, the personality characteristics of auditors have played a significant role in the entry of audit institutions into marketing issues. The problems that exist in the field of relations between the auditor and the employer in Iran can be listed in the integration of audit institutions, audit marketing, legal responsibility of auditors, etc. (Mehrazin & Arezubakhsh, 2022). The main research goal is to answer the question: what are the value-creating factors in the professional relationship between the auditor and the employer in the auditing profession? Theoretical Framework Professional relations between the auditor and the employer The audit performance is determined not only by the inherent complexities of the employer's company, but also by the audit processes and the auditor's characteristics. Experimental and theoretical researches in psychology and auditing show that audit performance is improved by the efforts of auditors and the formulation of effective rules and regulations. To increase the efficiency of these regulations, the number and complexity of the work of auditors is increasing, which requires more efforts and knowledge in the areas related to the work of auditors in the field of internal, financial and tax audits. This issue refers to more pressure on the internal work structures of auditors, audit institutions and tax authorities to understand, manage, and design audits and audit periods with the aim of maximizing their performance (improving quality). It can be said that audit related activities and related complexities are unavoidable, and auditors are different from each other in knowledge, awareness and ability; and better performance is obtained only if the combinations related to work complexities and the characteristics related to audit groups are properly optimally explained (Alissa et al, 2014). Intra-organizational point of view The behavior and action of auditors can be such that it gives peace of mind to the beneficiaries in using financial statements and relying on them, and it also can change the mindset of the beneficiaries regarding the position of auditing in the society by inefficient behavior and reducing the audit quality. In general, many cases may play a role in these issues and be effective. Domino et al, (2015) believe that part of these issues can be found in professional commitment, organizational commitment, and job satisfaction of auditors. Extra-organizational point of view Audit institutions operate in a very competitive environment with the requirement to reduce audit costs, which creates pressure on the institution to continuously improve the efficiency and effectiveness of the audit process to continue their activities. In the meantime, we cannot ignore the role of integration of audit institutions as a part of intra-professional relations in auditing, which is influenced by outside the organization and economic conditions, and can affect the relationship between auditors and employers. Mergers of audit firms allow these firms to expand their operations in the audit market or in a specific industry within that market, thereby achieving economies of scale, sharing audit knowledge, and reducing unit costs (Soltaninezhad et al., 2023.( Faraji & Shah Abdul Azimi (2022) investigated the interaction of auditor and employer characteristics and audit quality. The results using the multivariate regression method show that the quality of the audit is different with the criteria of the type of auditor's report and re-presentation of financial statements for large companies and government auditors, compared to small companies and government auditors. However, the quality of the audit is not different from the criteria of the absolute value of the accrual items for the large owners and the government auditor, compared to the small owners and the government auditor. Carlisle & Hamilton (2021) investigated the mode of communication in auditor-employer interactions: insights from employee's auditors. It indicates that the direct interactions between the auditor and the employer have a greater impact on the quality of audit work. Research methodology The current research is applicative in terms of purpose, and quantitative in terms of execution method. The statistical population of the research includes 303 people, including financial experts, executive directors, auditors or legal inspectors, CEOs or members of the board of directors, university faculty members, and etc.; selected through a targeted sampling method. Data collection is by means of questionnaire. Research findings SPSS and PLS software were employed for data analysis. The results showed that the strategies used in the negotiations between the auditor and the employer can have an effect on the rotation or retention of the auditor. Also, the effect of the merger of audit institutions on the relationship between the auditor and the employer has been positive, and of course, the monopoly of the audit market can affect the quality of the relationship between the audit institution and the employer. In other words, the monopoly of the audit market by large institutions can be a serious threat to other institutions. Also, the value of GOF was obtained equal to 0.200, which indicates a good and moderate fit in the model. Conclusion The purpose of this research was to investigate the value-creating factors in the professional relationship between the auditor and the employer in the auditing profession. The results of this research are in agreement with the results of Panahi et al, (2023), Ahmadi (2022), Faraji & Shah Abdul Azimi (2022), Carlisle & Hamilton (2021), Yusefzadeh et al, (2021), Berglund & Eshleman (2019), Ronen & Ye (2019), and Callen & Fang (2017). Ronen & Ye (2019) showed that prohibiting the establishment of a relationship between the employer and the auditor reduces the probability of detecting significant abuses. The reason is that such a law increases costs, and thus reduces the probability of detecting significant abuses, and in turn increases the audit margin cost, and forces the auditor to choose a lower level of audit. According to the results of the research, the following suggestions are presented: 1- Development of education and promotion of expertise: Auditing institutions should pay attention to the education and promotion of the expertise of auditors and business owners in order to establish better professional relations by improving their specialized knowledge and skills. 2- Improving transparency and information disclosure: Legislators should enact laws and regulations that lead to greater transparency in audit processes. This helps to build mutual trust between the auditor and the employer. 3- Increasing the independence of auditors: Audit institutions should emphasize the independence of their auditors so that they can provide their opinions without being influenced by the owners. This helps to increase the quality and credibility of audit reports.

Abstract Abstract The purpose of the current research is to explain the pattern of value creation from tax revenue and gross domestic product based on tax system reforms. According to its purpose, the research method is applicable; in terms of execution method, it is mixed (qualitative-quantitative), and in terms of nature and method, it is exploratory-explanatory. The statistical population of the research in the qualitative part includes 12 managers and assistants of the tax system, experts and consultants selected by non-probability sampling method with multiple strategies (intensity and snowball); and in the quantitative part it includes 265 people from those who were working in the administration of tax affairs of Tehran province, selected by random cluster sampling method. Data collection was done by semi-structured interviews in the qualitative part; and by the questionnaire in the quantitative part. Qualitative data analysis was done using the data-based method with MAXQDA software; and the quantitative part with Smart PLS. The findings of the research showed that the formation of the concept of tax revenue and gross domestic product value creation indicators based on tax system reforms includes 69 components in the form of 43 categories and 17 major categories. The conceptual model of the research has been implemented during the investigated relationships. The results of the research show that the influence between the components in the quantitative study had a necessary and appropriate level. Conclusion of the Tax system reforms focusing on value creation of tax revenue and GDP are very important in the economic and social development of countries. It is possible to create added value, sustainable development, reduce poverty and improve social skills by improving the tax system and related reforms. Extended Abstract Introduction The tax system, as one of the main tools of the government to collect public revenues and provide financial resources, plays a significant role in determining income distribution and affecting social welfare. This system can have a significant impact on GDP (production and economic growth) and therefore, its proper design and modification can help improve economic and social indicators (Haj Mahmoud Attar & Araei, 2022). Previous studies in the field of tax system reforms and their impact on GDP have been considered as one of the most popular topics in economic sciences. Research shows that the tax system and tax requirements can have a significant impact on GDP, and improving tax revenue can contribute to economic growth. (Akcigit et al, 2018). The economic infrastructure of any organization is formed by the financial issues of that organization, the establishment of a prosperous economic system with a strong financial infrastructure in the country helps to increase income and strengthen the financial health of the budget by establishing the optimal and appropriate relationship between limited resources and unlimited human needs. Human resources are certainly one of the most important pillars of organizations and each and every employee is involved in the process of development and progress of organizations, so one of the reasons for the success of organizations is to have taxpayers who strive beyond their duties. The inefficiency of the tax system has led to the emergence of challenges whose long-years persistence has led to problems. The low ratio of taxes to GDP in recent decades has caused taxes to play a small role in the country's economy despite all the measures and efforts, so in this research we are looking for an answer to the question: What is the pattern of value creation from tax revenue and gross domestic product based on tax system reforms? Theoretical Framework Value creation of tax revenue and gross domestic product Reforming the system of exemptions and tax facilities for important industries and less developed areas will create balance and uniform development throughout the country. Also, with the improvement of the tax transfer system and the progressive reduction of heavy tax effects, the incentives for tax fraud will decrease and public trust in the tax system will increase. This balance and positive relationship between the tax system and GDP leads to sustainable economic growth, reducing poverty, and improving social skills (Drummond et al, 2023). Increasing tax transparency and information Increasing tax transparency and information means providing accurate, comprehensive, and accessible information about taxes and the tax process. This action helps to strengthen tax justice, reduce tax evasion, and better structure of the tax system. Tax information related to any person or entity should be made available to the public. This information includes income, tax paid, exemptions, and other tax details. Transparency and knowing the tax reality of each individual is guaranteed by providing access to this information, and illegal activities such as tax evasion can be prevented (Panahian et al, 2012). Ramezani et al, (2024) investigated the explanation of the improvement pattern of tax revenue and GDP based on the behavioral reforms of the tax system. The findings of the research showed that the improvement of tax revenue and gross domestic product based on the behavioral reforms of the tax system (including the themes of causal conditions: economic, social, and political; central conditions: tax structure, reducing tax corruption, reforming the tax monitoring and enforcement system; conditions Strategies: promoting tax culture, decreasing tax discrimination, and tax system reform; intervening conditions: legal reforms and tax policies; background conditions: level of economic development, level of tax ability, and establishment of a fair tax system; conditions of consequences: increase in production, increase in economic competitiveness, and reduction of tax corruption) can have an effect. Jiang et al, (2023), in a research titled government social media and corporate tax avoidance showed that the higher the performance quality of government social media tax offices, the lower the degree of tax avoidance of local firms, which works by reducing tax avoidance incentives and increasing the difficulty of committing tax avoidance. In addition, government social media have a substitution effect on tax enforcement and administration. They also found that government social media should focus on strengthening their official and professional characteristics. Due to recent significant changes in the way companies handle taxes, the proportion of information that tax offices send in system operations should be increased accordingly. Research methodology The research method is applicable in terms of purpose; mixed (qualitative-quantitative)in terms of execution method, and exploratory-explanatory in terms of nature and method. The statistical population of the research in the qualitative part includes 12 managers and assistants of the tax system, experts and consultants selected by non-probability sampling method with multiple strategies (intensity and snowball); and in the quantitative part it includes 265 people from those who were working in the administration of tax affairs of Tehran province, selected by random cluster sampling method. Data collection was done by semi-structured interviews in the qualitative part; and by the questionnaire in the quantitative part. Research findings Qualitative data analysis was done using the data-based method with MAXQDA software; and the quantitative part with Smart PLS. The findings of the research showed that the formation of the concept of tax revenue and gross domestic product value creation indicators based on tax system reforms includes 69 components in the form of 43 categories and 17 major categories. The conceptual model of the research has been implemented during the investigated relationships. The results of the research show that the influence between the components in the quantitative study had a necessary and appropriate level. Conclusion of the Tax system reforms focusing on value creation of tax revenue and GDP are very important in the economic and social development of countries. It is possible to create added value, sustainable development, reduce poverty and improve social skills by improving the tax system and related reforms. Conclusion The current research was conducted with the aim of explaining the model of value creation from tax revenue and gross domestic product based on tax system reforms. The results of this research are in agreement with the results of Ramezani et al, (2024), Jiang et al, (2023), Cateia & Fereira (2023), Hayo & Mierzwa (2022), Yu (2022), Fstmawati (2022), Sarmad et al, (2022), Nguyen et al, (2021), Mohajeri et al, (2020), Hasanvand et al, (2020), and Makiyan et al, (2019). Hayo & Mierzwa (2022) analyzed the dynamic results of local forecasts by using shocks of interest, narrative information about future tax changes in the quarter of their introduction to the legislative body. After the tax cut is enacted, economic activity in the United States (UK) decreases (increases), but remains unaffected in Germany. When they allowed responses to vary over the business cycle, they found evidence that US GDP fell regardless of the business cycle, while UK GDP only rose in non-recessionary times. German GDP increases (decreases) during a recession (non-recession). According to the results of the research, the following suggestions were presented: Revising tax laws and regulations in order to simplify and be more transparent in the tax system, which will lead to reducing opportunities for tax conversion and reducing tax corruption. 2- Creating tax incentives for long-term investments and job creation, especially in local industries and technological sectors.