Auditor-management alignment and audit opinion: Evidence from Iran

摘要

This study investigates the effect of auditor-management alignment on audit opinion over the period 2003- 2011 on 81 firms listed on the Tehran Stock Exchange using logistic regression analysis. Results indicate that in companies with auditor-management alignment, auditor change level is low. In addition, the results indicate there is no relationship between auditor-management alignment, debt ratio, ownership percentage, firm size and auditor change with unqualified audit opinion. However, research evidences show that auditor andapos; s opinion type at previous year, audit fees, auditor type and return on assets ratio influence unqualified audit opinion. Among above variables, auditor andapos; s opinion types at previous year, audit fees and return on assets ratio have direct relationship with unqualified audit opinion but auditor type has a negative and inverse relationship with unqualified audit opinion.