The Relationship between Auditor Professional Ethics and Obtaining Collateral-Based Facilities

Professional ethics in auditing is a basic and very important need in this job, the absence of which can not be compensated by any other privilege. Therefore, the purpose of this study is to investigate the relationship between professional ethics of auditors and industry-specific auditors and obtaining collateral-based facilities (empirical evidence: companies operating in the Tehran Stock Exchange) during the period 2011 to 2015.

The present study was descriptive-correlational applied research. The research population was the companies listed on the Tehran Stock Exchange in 2015, which were selected as a statistical sample of the research by systematic elimination sampling of 90 companies. In order to test the research hypotheses, the regression method using the generalized least squares method and the panel-fixed effects method have been used.

The findings of the analysis show that the auditor's professional ethics is inversely related to the number of collateral-based facilities received, but the industry expert auditor has no effect on the number of collateral-based facilities received. Further findings also show that the percentage of ownership of major shareholders has no effect on the relationship between the professional ethics of the auditor and the industry auditor with the number of collateral-based facilities received.

The positive aspects of auditing financial statements, such as the professional ethics of the auditor, create information added value and reduce information asymmetry between loan applicant companies and lenders, thus reducing the need for collateral to obtain a loan. But the severity of this relationship is not affected by major ownership