Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

Investigating the Impact of Political Relations of the Board of Directors on the Relationship between Auditing Quality and Financial Reporting Quality

Document Type : Original Article

Authors
fahimeh ferdos 1
mojtaba ebrahimi romenjan 2
1 ferdos
2 khorasan
Abstract
The main purpose of the study is to investigate the effect of political relations on the relationship between audit quality and financial reporting quality of 157 companies listed on the Tehran Stock Exchange; therefore, the sample was collected by systematic elimination in the period 1392-1396. To achieve this goal, based on the research of Habib et al. (2018), 785 observations of the year-company were used to analyze the hypotheses. The present study is applied and is descriptive-correlational in nature and content.
In order to measure the quality of the audit, three indicators of the size of the audit firm, the expertise of the audit firm and the continuation of the audit period were used. The results of the research hypotheses test show that political communication has a negative and significant effect on the relationship between the continuity of the auditor's tenure and the quality of financial reporting. The results also show that political communication has a negative and significant effect on the relationship between the expertise of the audit firm and the quality of financial reporting, but no effect was found on the relationship between the size of the audit firm and the quality of financial reporting.
Keywords
Audit quality
political communications
financial reporting quality
auditor expertise
audit continuity