Anvestigation of the Effect of agency Costs and Information Asymmetry on Audit quality

The main objective of this study is to investigate of the effect of agency costs and information asymmetry on audit quality of companies listed in Tehran Stock Exchange (TSE). In this research for calculating audit quality, The two Criteria of and it size and audit report type have been. Our sample includes 145 companies listed in Tehran Stock Exchange during the period between 2001-2010. We have used logistic regression analysis to test the research hypotheses. Our findings in this study indicate that if audit size is to Measure audit quality, three exists a significant negative relationship between agency costs and audit quality. Indeed, with increase in agency costs, the audit Quality OF Financial statements decreases. Also, there exists a significant negative relationship between information asymmetry and audit quality. In other words, with increase in information asymmetry, decreases audit. Quality decreases Our findings in this study indicate that when the criteria of audit report type is used to measure and is quality, there is on significant relationship between agency costs and audit quality. Also, unlike perditions, there is a positive and significant relation between audit quality and information asymmetry.