Accounting Conservatism and Auditing Quality: an Applied Study On Egyptian Corporations

Abstract

This study explores the relationship between Accounting Conservatism and Auditing quality at industrial corporations listed in Egyptian stock exchange. The study model examined the relationship between the independent variables of auditing quality characteristics and the dependent variable of accounting conservatism, by applying the multiple regression analysis of data (Ordinary Least Squares OLS) which represents (54) corporations belong to the industrial sector covering  the period 2006-2010.  The study concluded that there was an acceptable level of accounting conservatism in the industrial corporations listed in Egyptian stock exchange, and also an acceptable level of the Auditing quality in Egyptian auditing firms. It was deducted an existence  of a positive impact of accounting conservatism in the industrial corporations listed in Egyptian stock exchange on each of ; international audit firms, the specialty in client's industry,  auditors qualification , and the client retention period .

Keywords: Accounting Conservatism, Auditing Quality, Egyptian Industrial corporations.