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

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

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Abstract

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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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

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

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords
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Classification
GJMBR-D Classification JEL Code: M40
  • Submission ReceivedJune 12, 2015
  • Peer Review Double Blind
    Handling Editor
  • Accepted July 4, 2015
  • Published July 15, 2015
Version of record

v1.2

Issue date
January 7, 2016

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

Gholamreza Rahimi
Gholamreza Rahimi Tehran University
  • Submission ReceivedJune 12, 2015
  • Peer Review Double Blind
    Handling Editor
  • Accepted July 4, 2015
  • Published July 15, 2015