Investigating the Effect of Audit Quality (Expertise, Tenure, Auditor Size) on the Probability of Renewal of Financial Statements of Companies Submitted in Tehran Stock Exchange

The purpose of the study is to investigate whether the quality of the audit in the current period has an effect on the possibility of resubmitting of financial statements in the upcoming period. For this purpose, the relationship between the factors affecting the quality of the audit in the current period and the possibility of renewing the presentation of comparative figures of financial statements in future periods for companies submitted in Tehran Stock Exchange was investigated. In order to test the research hypotheses after the initial data collection, a sample of companies operating in different industries was surveyed over 105 year-firm during a nine-year period (2001-2009). Excel was used to calculate and classify the research variables. Then, hypotheses were teste using the multiple logistic regression analysis available in SPSS. To examine the quality of audit, three variables auditor’s tenure, specialty and audit size were employed. In general, the results of the research indicate that increasing the quality of the audit in the current period will reduce the probability of resubmitting of financial statements in future periods. Also, the results reveal that among the criteria of audit quality, there is a significant relationship only between the auditor's tenure and the possibility of resubmitting of financial statements of financial statements of companies listed on Tehran Stock Exchange.