The effect of audit quality on the probability of bankruptcy of companies

In the present study, the effect of auditor quality characteristics (auditor size, auditor tenure and auditor expertise in the industry) on the probability of bankruptcy of member companies of the Tehran Stock Exchange has been investigated. For this purpose, a sample of 114 companies active in the Tehran Stock Exchange including a six-year period based on the financial statements of the companies studied during the years 1391 to 1396 was selected and to test the hypotheses using multivariate linear regression method with Using EVIEWS software version 9, was used. The results show that the size of the auditing firm has an adverse effect on the probability of bankruptcy. Also, the effect of other audit quality indicators on the probability of bankruptcy of companies was not statistically confirmed.