Audit Quality

Audit market concentration causes to decrease the scope of companies' au-thorities for selecting the audit institutions but instead it increases the power of auditors' market that it turns, leads to a decrease in quality and an increase in auditors' stress. The purpose of the present research is to study the effect of audit market concentration on auditors's job stress and audit quality of Tehran Stock Exchange (TSE) Listed Companies performed on a total of 97 companies between the years of 2013-2017. In order to evaluate the audit market concentration, the ratio of company's audit fees to total industry audit fees was used. The Accruals Quality model was also used to evaluate the audit quality. The results of the study showed that the audit market concentration had a negative and significant effect on the audit quality so that with the increase in audit market concentration, the audit quality is decreased. Also it was found that the audit market concentration had a posi-tive and significant effect on the auditors' job stress: it means that the in-crease of concentration on audit market as a result of time pressure can in-crease the auditors' job stress and thus the risk of financial statement assess-ment.

According to a method of earnings management activities that administrators can manage reported earnings from the definition of real activity. In particular they can be located across time and activities in a way that accounting period to achieve a certain revenue target. Conservative attitudes of auditors in presenting their views about the independence of the auditor can considered as a remarkable point in the audit function. The Purpose of this study was to investigate the effect of audit quality on earnings management real time IPO companies. For this purpose, the data of 128 companies listed on the Tehran Stock Exchange during the years 2007 to 2017 were evaluated. The results indicated that the audit quality increases in the year of initial public offerings. The results also demonstrated that there is a significant and positive relationship between the audit fees in the year of initial public offerings and the audit fees in the year after the initial public offerings. Also findings of the research show that earnings management through accrual items has a positive and significant relationship with initial stock offerings.

The purpose of this paper is to focus on examining the impact of conservatism on IPOs underpricing and then examine the role of audit quality as a moderating variable in the relationship between conservatism and IPOs. Based on financial-behavioral theories, analyses are conducted of data from a sample of Tehran Stock Exchange (TSE) listed companies for the fiscal years 2008–2017 (i.e. 230 firm-year observations). Correlation and regression analyses are performed to evaluate possible associations between conservatism and initial public offerings (IPOs) underpricing with regard to audit quality. There is a negative significant relationship between conservatism and IPOs underpricing, i.e., it reduces IPOs underpricing. Also, the research results indicated that the auditing quality cannot moderate the relationship between conservatism and IPOs underpricing in Iran’s stock market. This conclusion may be explained under the winner’s curse theory. Accordingly, informed investors do not request to purchase unattractive stocks, and uninformed investors demand and obtain all the unattractive stocks since there is no competition between informed and uninformed investors. A limitation of this paper is the number of firms, which for future studies needs to be considered. This research is expected to contribute comprehensively to expanding the theoretical foundations and increase audience knowledge of the underpricing of initial public offerings (IPOs). It is also expected that the results of the study will: 1. determine the underpricing of IPOs in Iran during the research period; 2. document the role of conservatism in reducing underpricing of IPOs; 3. potentially prevent inappropriate pricing of new stocks. Furthermore, the findings of this study suggest that the application of financial-behavioral theories calls for more inquiry.

Audit quality is one of the most important issues in the field of auditing and the capital market. Defining a framework for determining the quality of audit is important so the present study seeks to rank and compare the factors affecting audit quality from the perspective of different groups using a multi-attribute TOPSIS technique. In this research, first, 15 influencing factors were selected as quality indicators using library studies, and then these indicators were analyzed using TOPSIS multi-attribute technique by distributing questionnaires among four groups including: researchers and faculty members, audit institutes, chartered accountants, members of the audit committee, and financial managers of the companies listed on the Tehran Stock Exchange and they were rated and compared. From the view point of the of researchers and faculty members, auditing institutes, auditing committee members and chief financial managers, the most important effective factors on the audit quality are professional level of the auditor in the industry expertise, number of employed chartered public accountants and quality control score, respectively. The results of index comparison test indicates that from the view point of the four studied groups, there is a sensible difference between 15 abovementioned indicators.