The Relationship between Audit Fees with Earnings Quality and Financial Reporting Quality

Financial reporting directly affects the capital market. The fee for auditing services is an essential condition for ensuring financial reporting. However, higher audit fees do not always reflect higher quality audit costs. The results of abnormal auditing related research are also found in various forms in the accounting literature, indicating the complexity and uncertainty of interpretation of audit fees and its relationship to financial reporting. The purpose of this study was to investigate the relationship between audit fees and earnings quality and financial reporting quality in listed companies in Tehran Stock Exchange. The required information for this research is taken from the financial statements of 119 companies over the period 2014-2018. The research method is descriptive correlational with applied approach and the data collection method is based on the theoretical foundations of the library method and in the hypotheses testing part is the financial statements documentation method and  Panel analysis was used to analyze the hypothesis. Model estimation results showed that there is a significant and negative relationship between audit fee and earnings quality and financial reporting quality of listed companies in Tehran Stock Exchange.