Investigating the effect of audit tenure on Information uncertainty

This study investigates the effect of audit tenure on the information uncertainty characteristics of the business unit. The information uncertainty characteristic is measured by the criteria of dispersion of earnings per share forecast, earnings per share forecast error and volatility of stock returns. Research hypotheses are tested using integrated data regression and the generalized least squares method. On the other hand, the present study is a post-event type and in terms of the purpose of this study is considered as applied research. The statistical population of the study is non-financial companies listed on the Tehran Stock Exchange during the years 2010-2016. The results of the survey of 56 member companies of the statistical sample show that there is a significant and inverse relationship between the audit tenure period with the variables of earnings forecast per share and earnings forecast error per share, but the variable of stock return with the period Audit firm does not have a significant relationship. Thus, an increase in the tenure of the audit reduces the uncertainty about the information provided by the entity, which confirms the auditor's view of expertise and addresses concerns about the auditor's view of independence.