Abstract:
The purpose of this study was to an investigation of financing costs factors on
the auditor's qualified report in companies listed in Tehran stock exchange. The
criteria considered in this study were the audit firm size, auditor's specialization in
the partner level, auditor's selection tenure and audit fees. For this purpose, five
hypotheses were developed and data related to 85 companies of Tehran stock
exchange for the period 2009-2014 were used. To test them, the multivariate
regression technique was applied to panel data. The results of the first hypothesis
indicated that there was no significant relationship between the audit firm size and
qualified audit report. According to the second and third hypotheses, there were
significant positive and negative relationships between auditor's specialization in
the partner level and audit firm with the qualified report, respectively. The fourth
one regarding the relationship between the auditor's selection tenure and qualified
audit report was rejected. The fifth hypothesis results also indicated that there was
a significant negative relationship between audit fees and qualified audit report.
Machine summary:
An Investigation of Financing Costs Factors on the Auditor's Qualified Report in the Companies Listed in Tehran Stock Exchange Mahmoud Hematfar*, Hossein Soheili Department of Accounting, Borujerd Branch, Islamic Azad University, Borujerd, Iran ARTICLE INFO Article history: Received 14 March 2017 Accepted 01 June 2017 Keywords: Qualified Report; Auditor's Specialization in the Industry; Auditor's Selection Tenure; Audit Firm Size; Audit Feed; ABSTRACT level, auditor's selection tenure and audit fees.
According to the second and third hypotheses, there were significant positive and negative relationships between auditor's specialization in the partner level and audit firm with the qualified report, respectively.
[12] stated that different factors influence the reception of qualified (adjusted) report: the first case is the wrong presentation of financial statements as significant and the other cases are related to the auditor's task and his independence: In fact, the first case is related to the exchange companies and their motivations for this task and the two next ones relate to the audit quality.
Audit characteristics effective on the qualified audit opinions Audit firm size: De Angelo [11] presents a two-dimensional definition of audit quality in that an auditor is considered independent if he can identify an important error and report it to the audit services customers.
6 Conclusion In this study, the effects of the independent variables of auditor's specialization, audit firm size, auditor's selection tenure and audit fees on the dependent variable of the qualified audit opinion were investigated.