The Effect of Audit Quality on Audit Fees

The purpose of this study is to investigate the effect of audit quality on audit fees of listed companies at Tehran Stock Exchange. Quality criteria for this research as the audit firm size، auditor industry specialization and auditor tenure have been selected. The hypotheses and data were formulated for 72 companies at Tehran Stock Exchange for the period between 2007 to 2011. To test the hypotheses، multiple regression techniques with panel data methods were used. Results showed that there was a significant negative relationship between audit firm expertise and audit fees. Furthermore، there is a significant positive relationship between auditor tenure and audit firm size with audit fees.