The effects of accruals and cash flows on auditing services pricing

There is a theorical expectation according which the existence of accruals and cash flows, their variety and their expansion have effect of audit fees through having effect on size, risk and complication of auditee unit, but these are little evidence documented to prove that. In this research effective factors on audit pricing plus cash flow, working capital accruals and non-working capital accruals are nominated as independent variables and auditing fees as dependent variable. All the needed date are gathered from non financial companies listed in the Tehran Stock Exchange (TSE) during 1382 A.H.L to 1387 A.H.L. both pooled regression and Ordinary Least Squares (OLS) are applied for hypothesis test. Results show that there is a positive significant level of 99% for relation between cash flows and auditing fees. While there is a negative significant level of 95% relation between total accruals, working capital accruals, non-working capital accruals and auditing fees. Only the three variables of auditor, leverage and total assets have a significant relation with auditing fee. Adjusted R2 is about 46%. Durbin-watson statistic equals 2.2 that shows the non existence of autocorrelation between independent variables of the research.