The aim of the research is to investigate the relationship between auditor rotation, disclosure of important audit issues and financial reporting quality in companies admitted to the Tehran Stock Exchange.
Research methodology: The statistical population of this research is among the companies accepted in the Tehran Stock Exchange, during the period of 2012 to 2019. In order to check the validity of the research hypotheses, multivariate regression based on mixed data with fixed effects and Eviuse 11 software was used.
Research findings: The results of the first hypothesis showed that auditor rotation has a significant and positive effect on the disclosure of audit matters. Also, the results of the second hypothesis showed that the relationship between the auditor's rotation and the auditor's client's financial reporting quality will be stronger when there is a change in important audit issues than when there is no change in important audit issues.
Discussion and conclusion: In connection with the explanation of the results from the researcher's point of view, it can be stated that the effects of auditor rotation, if any, will become more obvious and tangible when the existing conditions make the auditor's judgment more critical and have a greater impact on the effectiveness of the audit. A change in the disclosure of matters of audit significance represents a change in the clients' assessed significant risks and is considered one of these conditions. According to this argument, it can be seen that the relationship between auditor rotation and financial reporting quality is more important when there is a change in the disclosure of audit material matters than when there is no change in the disclosure of material audit matters.