The effect of board knowledge on the relationship between audit quality and the likelihood of companies going bankrupt

Rapid technological advances and widespread environmental change have accelerated the economy. Increasing competition from businesses has limited profitability and increased the likelihood of bankruptcy. Businesses go through ups and downs during their operational life, and some of them are always known as successful units due to their strong performance and some as unsuccessful units due to their poor performance. The purpose of this study is to investigate the effect of board knowledge on the relationship between audit quality and the probability of bankruptcy of companies. The statistical sample of this research includes 114 companies active in Tehran Stock Exchange, including a six-year period based on the financial statements of the companies studied during the years 1391 to 1396, which to test the hypotheses of multivariate linear regression using soft I EVIEWS software version 9, used. The results show that the financial knowledge of the board of directors has no effect on the relationship between audit quality and the probability of bankruptcy of companies.