Audit Quality Framework: Investigate Comparative in Two Groups of Companies, Small Size Companies (SSCs) and Medium Size Companies (MSCs) in TSE - Softcover

Sabaghiyan Toosi, Omid; Moradi, Zahra; Yazdani, Shohreh

Softcover

ISBN 10: 6202006129 ISBN 13: 9786202006125

Publisher: LAP LAMBERT Academic Publishing, 2017

Synopsis

Because rarely the information about size's companies and differences between small and medium firms are listed, this study investigates comparative of the effects of audit quality on earnings management and cost of equity capital in two groups of companies (Small Size Companies (SSCs) and Medium Size Companies (MSCs) and also examine the entire sample the economic consequences of auditor choice and received the qualified audit opinion. The differences in the nature of the ownership, agency relations and bankruptcy risks lead MSCs to have weaker incentives than SSCs to engage in earnings management. In addition, investors’ pricing of information risk as reflected in the cost of equity capital will be more pronounced for MSCs than for SSCs with high and low audit quality. In this study, of auditor tenure criteria and auditor industry expert as an indicator of audit quality, of the Becker et al and Reynolds and Francis model as an earnings management index and rPEG approach as a benchmark for the cost of equity capital is used. The variables used in this study from financial statements firms listed in Tehran Stock Exchange (TSE).

About this title

About the Author

Member of Young Researchers and Elite Club, PhD Student in Accounting, Member of Iranian Accounting Association, Member of the National Elites Foundation, Member of the Iranian Institute of Certified Accountants, 5 years experience in auditing profession, and 2 years in budget expert and writing a few emperical papers in my field.

Edition details

• Publisher: LAP LAMBERT Academic Publishing
• Publication date: 2017
• Language: English
• ISBN 10: 6202006129
• ISBN 13: 9786202006125
• Binding: Paperback
• Number of pages: 68