|
Volume : III, Issue : X, November - 2013 A Contrastive Analysis Of Independent Auditor Tenure In Distressed And Non-distressed Financial Companies Admitted In Tehran Stock Exchange Ali Bastami Published By : Laxmi Book Publication Abstract : Companies are continually looking for profit making and wealth. However, some companies are not able to carry on activities and fulfill their commitments up to a predictable time in future. Therefore, the sources which could be invested on profit-making chances are wasted away and in a broad view will play a negative effect on macro- economic indexes which all indicate financial distress (ambiguity on activity continuity) of the companies. Then, if an independent auditor comes to the conclusion during his tenure that the company's future activity is unclear, it must be stated in auditing report to avoid misleading the user of the financial reports.
Therefore, present paper is an attempt to investigate whether there is a meaningful difference between independent auditors tenure in financially distressed and non-distressed companies.
In other words, can auditing be a factor to avoid a company's financial distress? In order to analyze the data mean comparison of two populations and in order to make meaningful the regression coefficient t-student test were used. In order to check the normality of data kolmogrov- Smirnov test was used.
Based on the investigations it was concluded that in financially non-distressed companies tenure is longer than financially distressed companies. In other words, as an independent auditor's tenure increases, it can be a factor to predict companies' studies.Comparative analysis of independent audit tenure in distress and non-distress financial companies accepted in Tehran stock market. Keywords : Article : Cite This Article : Ali Bastami , (2013). A Contrastive Analysis Of Independent Auditor Tenure In Distressed And Non-distressed Financial Companies Admitted In Tehran Stock Exchange. Indian Streams Research Journal, Vol. III, Issue. X, http://oldisrj.lbp.world/UploadedData/3231.pdf References : - Bazrafshan, a (2009).An investigation of auditor's and reports of conservative in Tehran stock market companies' Tehran University, MA thesis.
- Jabbarzadeh, so,khodayar, ;porreza, s.(2009).“An investigation of relationship between equalizing profit and financial distress of companies in Tehran stock market. financial accounting,Mobarekeh Azad university, 1,25 pp, 60- 80
- Nnkoomaram, BadavrNahandi, y. (2009). “Presenting a sample to characterize and evaluate effective factors on financial reporting quality in Iran”.Beyon management, 8. pp. 141-187.
- Carcello JV, Nagy AL, Client size, auditor specialization and fraudulent, financial reporting. Managerial Auditing Journal 2004; 19: 651-668.
|
Article Post Production
Article Indexed In
|