Investigating the Relationship between Audit Quality and Audit Risk in Companies Listed on Tehran Stock Exchange

Auditing is considered as an effective way to limit the powers of managers in contractual relations. The financial statements also provide much of the information needed by the company's investors and creditors. If the information contained in these reports is not of the required quality and is complex, the risk of auditing increases. Therefore, the purpose of this study is to investigate the relationship between audit quality and audit risk. The statistical population of this study is the companies listed on the Tehran Stock Exchange and to achieve the purpose of the research, by applying filtering, the data of 163 companies listed on the Tehran Stock Exchange and in the period 2011-2019 using multivariate linear regression are reviewed and analyzed. Findings showed that audit quality has a negative and significant relationship with audit risk. In other words, as the quality of the audit increases, so does the audit risk. Findings of this research develop the literature related to the quality of financial reporting and consequently the audit process and risk and finally the quality of auditing.