Investors rely on independent audit quality, and influences the quality of financial reporting and disclosure of financial statements

Paidarmanesh, Navid; Salehi, Mahdi; Khorami Kakhki, Matina; Moradi, Mahdi

doi:10.22054/qjma.2020.239.1021

Investors rely on independent audit quality, and influences the quality of financial reporting and disclosure of financial statements

Document Type : Research Paper

Authors

Navid Paidarmanesh

Mahdi Salehi

Matina Khorami Kakhki

Mahdi Moradi

https://doi.org/10.22054/qjma.2020.239.1021

Abstract

According to the agency theory, signaling theory, Stakeholder theory, asymmetry information theory and proof of the users of financial statements need to this information and its confirm by independent auditor, therefore we study the relationship between independent audit quality and disclosure quality of financial statement In this research. The study covers a period from 2009 to 2013 for companies in the Stock Exchange of Tehran. Audit quality is the independent variable in this research that measured by auditor industry specialization, auditor tenure, reputation and quality of audit firm, antiquity and experience of auditor and audit fees. And disclosure quality is dependent variable that measured by given annually point to companies. We use the R software for analyze the model. This study has six hypothesis for each of six independent variables. According to the statically results for research model, all of the six hypothesis rejected and we find that there is no significant relationship between each of independent variables and disclosure quality. According to rejection of all of the hypothesis, we conclude that there is no relationship between independent audit quality and disclosure quality of financial statement Tehran Stock Exchange companies.

Keywords

Audit Quality

Disclosure Quality

Independent Audit

Tehran Stock Exchange