Effect of audit quality on differences between audited and unaudited financial statements

The purpose of this study is to investigate the effect of audit quality on differences between audited and unaudited financial statements. Because of the positive and negative effects of audit quality on the difference, there are two competing analyzes. The present study examines the impact of the four criteria of the quality of the audit, including "the type of auditor (government or private), the quality control points of the audit firm, the size of auditor, and the expertise of the auditor's industry focuses on the amount of item discrepancies in the audited and unaudited financial statements, including "assets, liabilities, operating profit, pre-tax profit, profit after tax and operating cash flows". But for this purpose, the data of 156 companies accepted in Tehran Stock Exchange during the fiscal years of 2009 to 2016 have been analyzed. The results of the research indicate that there is a direct and significant relationship between the quality of audit (based on the type of auditor and the quality control points of audit firm) and the difference between audited and audited profit and loss statement. The expertise of the auditor industry and size of auditor has not effect on the difference between audited and unaudited financial statements.