The Relationship between Earnings Quality and Audit Quality: An Iranian Angle

Iranian Journal of Accounting, Auditing and Finance

دوره 4، شماره 2، تابستان 2020، صفحه 55-66  

نوع مقاله: Auditing

شناسه دیجیتال (DOI): 10.22067/ijaaf.2020.39281

نویسندگان

Mohammad Seddigh Ansari Qeshmi ¹؛ Hamideh Nazaridavaji²

¹Payamenoor University, Economics and Administrative Sciences

²Ferdowsi University of Mashhad, Faculty of Economics and Administrative sciences

چکیده

The present study is concerned about the relationship between earnings quality and audit quality of audit firms to figure out whether the earnings quality of firms audited by larger audit firms is more than that of the smaller firms or the earnings quality of firms audited by longer tenure audit firms is more than that of the shorter tenure firms or not.
The study's hypotheses were tested using a sample of 129 year-company listed on the Tehran Stock Exchange during 2012-2016 and by using the multiple regression pattern based on the data integration technique. Hence, the multivariable regression model is used for testing the hypotheses.
The obtained results show that the earnings quality of firms audited by small audit firms outweighs that of the large audit firms. Moreover, the findings indicate that those firms audited by longer tenure audit firms, compared with those audited by shorter tenure audit firms, enjoy a better earnings quality.

کلیدواژه‌ها

Earnings Quality؛ Audit Firms’ Tenure؛ Mandatory Rotation؛ Audit Quality