mehdi nirzaie; naser izadinya
Abstract
In this study ,the impact of highly valued equity on the relation between audit quality and Discretionary Accruals in the companies listed in Tehran Stock Exchange is investigated .Audit quality is measured by using of the audit firm size, audit industry specialization, the length of the auditor-client ...
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In this study ,the impact of highly valued equity on the relation between audit quality and Discretionary Accruals in the companies listed in Tehran Stock Exchange is investigated .Audit quality is measured by using of the audit firm size, audit industry specialization, the length of the auditor-client relationship and industry specialist audit firms with long tenure. Also, Discretionary Accruals is estimated using the Jones model (1991). The results of investigating a sample of 153 firms during the years of 1386 to 1392 shows that interaction effect of highly valued equity and audit quality proxies is positive and significant. This means that, magnitude of the negative effect of audit quality on the discretionary accruals in the highly valued firms decreases and high quality auditors not reducing amount of Discretionary Accruals in highly valued firms. Thus, in the negotiation between auditors and managers about preparation of financial statement in the highly valued equity, managers by using of better information about its firm can success on auditors.
