The Impact of the Public Accounting Firm Size on Quality of Audit Reports issued by Iranian Association of Certified Public Accountants (IACPA) Member Firms

The purpose of this study is to investigate the impact of public accounting firm's size on the quality of audit reports issued by Iranian Association of Certified Public Accountants (IACPA) member firms. Our sample consisted of 192 public accounting firms for the 1391-1396 (2012-2017) years. In this study, six assumptions are tested and the correlation between number of partners, number of professional staff number of, Certified Public Accountants employed and the number of clients, annual income of the public accounting firm and the time since the firm's establishment affecting the quality of audit reports of public accounting firms are investigated. Test results show a significant correlation between the number of partners, number of professional staff, number of Certified Public Accountants employed, the number of clients and the time since the firm's establishment affecting quality of audit reports issued by public accounting firms but a negative correlation between public accounting firms' annual income and quality of audit reports issued.