Investigation of the Effect of Audit Specialists on Financial Reporting and Market Pricing

Prior studies suggested auditor's industry specialization results in improving audit quality. This improvement increases accruals, information content with emphasis on its discretionary portion. Thus, 117 listed companies in Tehran Stock Exchange during 1380 to 1385 were tested to investigate this subject. This study compared earnings response coefficient in companies audited by industry specialist auditors with this scale in other companies. Also, this study used from market portion approach for indentifying industry specialist auditor. The result showed that there is no significant difference between the information content of earning discretionary accrual portion in companies with specialist auditor and other companies.