The Impact of Audit Value Added on Reducing Information Asymmetry and Enhancing Stakeholder Trust

Soheila  Mohseni; Ali Jafari; Nader  Rezaei; Rasoul  Abdi

Authors

Soheila Mohseni Department of Accounting, Bon.C., Islamic Azad University, Bonab, Iran Author https://orcid.org/0009-0007-7644-7887
Ali Jafari Department of Accounting, Bon.C., Islamic Azad University, Bonab, Iran https://orcid.org/0000-0001-5060-1291
Nader Rezaei Department of Accounting, Bon.C., Islamic Azad University, Bonab, Iran Author https://orcid.org/0000-0001-9907-4648
Rasoul Abdi Department of Accounting, Bon.C., Islamic Azad University, Bonab, Iran Author https://orcid.org/0000-0001-5558-8030

Keywords:

Audit Value Added, Information Asymmetry, Stakeholder Trust, Audit Quality, Financial Reporting, Corporate Governance, Auditing

Abstract

This study aimed to investigate the effect of audit value added on reducing information asymmetry and enhancing stakeholder trust among auditing profession experts in Tehran. This applied, quantitative, cross-sectional study employed a descriptive-correlational design. The statistical population consisted of auditing profession experts in Tehran, including university faculty members, managers and partners of audit firms, corporate financial managers, and members of audit committees. Using purposive sampling, 240 eligible participants were included in the final analysis. Data were collected through a structured questionnaire measuring audit value added, information asymmetry, and stakeholder trust. Content validity was assessed through expert review, while construct validity, convergent validity, and discriminant validity were examined through measurement-model assessment. Internal consistency was evaluated using Cronbach's alpha, rho_A, and composite reliability. Data were analyzed using descriptive statistics and partial least squares structural equation modeling. Bootstrapping was applied to determine the statistical significance of structural paths, while coefficients of determination, effect sizes, predictive relevance, and model-fit indices were used to evaluate the explanatory and predictive performance of the model. Audit value added had a significant negative effect on information asymmetry (β = -0.681, SE = 0.041, t = 16.61, p < 0.001, 95% CI [-0.756, -0.596]) and explained 46.4% of its variance (R² = 0.464). Audit value added also had a significant positive effect on stakeholder trust (β = 0.729, SE = 0.036, t = 20.25, p < 0.001, 95% CI [0.654, 0.794]) and explained 53.1% of its variance (R² = 0.531). Effect sizes were large for both information asymmetry (f² = 0.866) and stakeholder trust (f² = 1.132), and positive Q² values confirmed the model's predictive relevance. The findings indicate that audit value added constitutes an important mechanism for improving the corporate information environment by reducing informational inequalities and strengthening stakeholder confidence. Auditing that extends beyond formal compliance and contributes to transparency, credibility, professional assurance, and accountability can substantially enhance stakeholders' reliance on organizational information and reinforce the broader governance role of the audit function.

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