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ISSN : 1738-3110

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Vol.12 No.3
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Prediction of Auditor Selection Using a Combination of PSO Algorithm and CART in Iran

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2014, v.12 no.3, pp.33-41
https://doi.org/https://doi.org/10.15722/jds.12.3.201403.33
Salehi, Mahdi
Kamalahmadi, Sharifeh
Bahrami, Mostafa
Salehi,, M. , Kamalahmadi,, S. , & Bahrami,, M. (2014). Prediction of Auditor Selection Using a Combination of PSO Algorithm and CART in Iran. The Journal of Distribution Science, 12(3), 33-41, https://doi.org/https://doi.org/10.15722/jds.12.3.201403.33
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Abstract

Purpose - The purpose of this study was to predict the selection of independent auditors in the companies listed on the Tehran Stock Exchange (TSE) using a combination of PSO algorithm and CART. This study involves applied research. Design, approach and methodology - The population consisted of all the companies listed on TSE during the period 2005-2010, and the sample included 576 data specimens from 95 companies during six consecutive years. The independent variables in the study were the financial ratios of the sample companies, which were analyzed using two data mining techniques, namely, PSO algorithm and CART. Results - The results of this study showed that among the analyzed variables, total assets, current assets, audit fee, working capital, current ratio, debt ratio, solvency ratio, turnover, and capital were predictors of independent auditor selection. Conclusion - The current study is practically the first to focus on this topic in the specific context of Iran. In this regard, the study may be valuable for application in developing countries.

keywords
Independent Auditor Selection, PSO Algorithm, CART

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