The Effect of Independent Audit Quality on the Quality of financial Disclosure - Evidence from Tehran Stock Exchange

Abstract

Users of financial statements rely solely on the information released by the company. As quality information is more, users get better decisions. Auditing also is one of the tools of discosure information. This study is ranged from 2008 to 2013 for firms listed in Tehran stock exchange. Audit quality is the independent variable in this study and measure by six factors. Dependent variable is the quality of financial disclosure. Study has six hypotheses models is multiple regression and software used is Eviews version 8. The results demonstrated that there is no ralationship between auditor industry specialization, auditor tenure, audit fee income of the audit firm, to quality of information. But there is a significant relationship between auditing firm antiquity and audit quality to quality of information. Finally, according to the hypothesis test is concluded that, contrary to popular perception, there is no relationship between the quality of audited financial statements and the quality of information presented in the financial statements companies in Tehran Stock Exchange.

Keywords: Audit Quality, Quality of Disclosure, Audit Fees, Auditor Industry Specialization