The Survey of the Relationship between Auditing Quality and the Profitability in the Companies Accepted in Tehranas Exchange Market

1
Gholamreza Rahimi
Gholamreza Rahimi
2
Dr.tehrani
Dr.tehrani
3
Samira Mohammad Amini
Samira Mohammad Amini
1 Tehran University

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The present study deals with the evaluation of the relationship between auditing quality and the profitability in the companies accepted in Tehran’s securities exchange market. To determine the auditing quality there has been made use of two scales of auditor size (DeAngelo, L.E., 1981) and the auditor’s tenure period (Myers, J.N., Myers, L.A. & Omer, T.C., 2003). The total number of 52 companies accepted in Tehran’s securities exchange market has been surveyed. The study findings show that generally there is a positive and weak relationship between the auditor size (auditor’s good fame) and the auditor’s tenure period and the profitability ratios. To survey the auditor’s size the member auditing institutions of the formal accountant society are regarded as small auditing firms and accounting organization due to the great many staff members working in it and also due to their long working history is considered as the big auditing institution.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Gholamreza Rahimi. 2016. \u201cThe Survey of the Relationship between Auditing Quality and the Profitability in the Companies Accepted in Tehranas Exchange Market\u201d. Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 15 (GJMBR Volume 15 Issue D4): .

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GJMBR Volume 15 Issue D4
Pg. 25- 42
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-D Classification: JEL Code: M40
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v1.2

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January 7, 2016

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English

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The present study deals with the evaluation of the relationship between auditing quality and the profitability in the companies accepted in Tehran’s securities exchange market. To determine the auditing quality there has been made use of two scales of auditor size (DeAngelo, L.E., 1981) and the auditor’s tenure period (Myers, J.N., Myers, L.A. & Omer, T.C., 2003). The total number of 52 companies accepted in Tehran’s securities exchange market has been surveyed. The study findings show that generally there is a positive and weak relationship between the auditor size (auditor’s good fame) and the auditor’s tenure period and the profitability ratios. To survey the auditor’s size the member auditing institutions of the formal accountant society are regarded as small auditing firms and accounting organization due to the great many staff members working in it and also due to their long working history is considered as the big auditing institution.

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The Survey of the Relationship between Auditing Quality and the Profitability in the Companies Accepted in Tehranas Exchange Market

Dr.tehrani
Dr.tehrani
Gholamreza Rahimi
Gholamreza Rahimi Tehran University
Samira Mohammad Amini
Samira Mohammad Amini

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