The Effect of Audit Quality on the Performance of Listed Companies in Tehran Stock Exchange

Abstract

Audit opinion shopping has been studied extensively in accounting research. A firm engages in opinion shopping by influencing or even manipulating its auditor‟s decision in certain ways to obtain an opinion that is more favorable that that warranted by the quality of its accounting information. If such behavior exists, then it would lead to a higher degree of information asymmetry between managers and investors and weaken auditing‟s protective effect on investors. Many researches have been done to improve the understanding of audit quality to a better understanding This concept can be achieved and the relationship between audit quality and other parameters to be determined. One of Many variables that its relationship with audit quality research, examined. The size of the audit firm. Methods of the research in this field Angelou January 1981 to practice. He stated his Yhay concluded between audit quality and auditor size. There is a positive relationship. This study sought to examine the relationship between audit quality and financial performance of companies in Iran. For this population the financial manager is accepted in Tehran Stock Exchange and 2008 to 2012 have been selected. Distribute and collect the questionnaires they reached the conclusion that audit quality could affect the financial performance of companies.