The effect of ownership type on the relationship between audit firm rating and audit quality

Audit quality is described as a control system, the auditing ability to identify and report material misstatements in the financial statements, and the reduction of information asymmetries between management and shareholders. The purpose of this study is to investigate the effect of ownership type on the relationship between the rating of the auditing firm and the quality of auditing in companies listed on the Tehran Stock Exchange. In terms of the type of purpose, the research is part of applied research and the research method is correlational in terms of nature and content. The research was conducted in the framework of deductive-inductive reasoning and panel analysis was used to analyze the hypotheses. To collect information, data from 120 companies listed on the Tehran Stock Exchange in the period 1390-1397 have been used. The results of this study show that there is a significant and positive relationship between the ranking of auditing firms and the size of the auditing firm (number of partners of the auditing firm) and the audit fee. The results also showed that public ownership does not affect the relationship between the ranking of audit firms and the size of the auditor; But it has a significant and inverse effect on the relationship between the ranking of audit firms and audit fees.