this study investigates relation between accruals quality and auditor selection in the listed firms of tehran stock exchange (tse) during a five-year period from 2007 to 2011.  using correlation method and logistic regression technique, the results of this study indicate that client size, management change and accruals quality impact on selection of the big audit firms.  the results of this res...

.•\bstract—Theoretical research suggests that large auditors have more incentive to issue accurate reports compared to small auditors (DeAngelo. 1981; Dye, 1993). Controiling for the client characteristics of large and small auditors, this paper shows that large auditors issue reports that are more accurate and more informative signals of financial distress. These findings are consistent with t...

This Study seeks to scrutinize whether surplus free cash flow is correlated with earnings management, if auditor size moderates this relationship. To do so, modified Jones discretionary accrual model (1995) and audit firm size are used as audit quality indicator to measure earnings management. The research hypotheses are built upon a sample of 103 companies listed on the Tehran Stock Exchange d...

In this paper, we identify instances in which the auditor-client relationship has been terminated (i.e., the auditor resigns or the client dismisses the auditor) but the auditor continues to complete a subsequent quarterly review. Using discretionary accruals and earnings benchmark tests to proxy for the extent of earnings management, we contrast earnings management behavior during these “lame ...

This study examines the demand for audits in a modern voluntary audit setting, in which a number of levels of auditor quality can be chosen. Where audits are not compulsory, a substantial number of organizations choose them. The choice of auditor quality is associated with size, debt and salaries, but not with donations and grants. The results provide support for the audit as a form of monitori...