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

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 fir...

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Main Authors: Mohammad Seddigh Ansari Qeshmi, Hamideh Nazaridavaji
Format: Article
Language:English
Published: Ferdowsi University of Mashhad 2020-05-01
Series:Iranian Journal of Accounting, Auditing & Finance
Subjects:
Online Access:https://ijaaf.um.ac.ir/article_39281_dae30d2561ac8a9cf889dbd1c2987139.pdf
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author Mohammad Seddigh Ansari Qeshmi
Hamideh Nazaridavaji
author_facet Mohammad Seddigh Ansari Qeshmi
Hamideh Nazaridavaji
author_sort Mohammad Seddigh Ansari Qeshmi
collection DOAJ
description 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.
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spelling doaj-art-fed1e0750c1f4cfaa300e7c312e48cf02025-08-20T02:39:20ZengFerdowsi University of MashhadIranian Journal of Accounting, Auditing & Finance2717-41312588-61422020-05-0142556610.22067/ijaaf.2020.3928139281The Relationship between Earnings Quality and Audit Quality: An Iranian AngleMohammad Seddigh Ansari Qeshmi0Hamideh Nazaridavaji1Economics and Administrative Sciences, Payamenoor University, Tehran, IranFaculty of Economics and Administrative sciences, Ferdowsi University of Mashhad, Mashhad, IranThe 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.https://ijaaf.um.ac.ir/article_39281_dae30d2561ac8a9cf889dbd1c2987139.pdfearnings qualityaudit firms’ tenuremandatory rotationaudit quality
spellingShingle Mohammad Seddigh Ansari Qeshmi
Hamideh Nazaridavaji
The Relationship between Earnings Quality and Audit Quality: An Iranian Angle
Iranian Journal of Accounting, Auditing & Finance
earnings quality
audit firms’ tenure
mandatory rotation
audit quality
title The Relationship between Earnings Quality and Audit Quality: An Iranian Angle
title_full The Relationship between Earnings Quality and Audit Quality: An Iranian Angle
title_fullStr The Relationship between Earnings Quality and Audit Quality: An Iranian Angle
title_full_unstemmed The Relationship between Earnings Quality and Audit Quality: An Iranian Angle
title_short The Relationship between Earnings Quality and Audit Quality: An Iranian Angle
title_sort relationship between earnings quality and audit quality an iranian angle
topic earnings quality
audit firms’ tenure
mandatory rotation
audit quality
url https://ijaaf.um.ac.ir/article_39281_dae30d2561ac8a9cf889dbd1c2987139.pdf
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