Review the Theoretical Basis of the Impact of Geographical Distance Between Audit Firm and Company on the Audit Fees, Timeliness of Audit Report and Rotation of Auditor

The purpose of this article is review the theoretical basis of the impact of the geographical distance between the audit firm and the firm on the audit fees, the timeliness of the audit report, and the rotation of the auditor. More communication and mastery over the company's activities in auditing, which are less likely to occur in areas where geographical distances are high and will increase the risk of audits, leading to more auditors' tests to ensure and extend the level of review. Which is somehow effective in determining audit fees. From this perspective, the longer the audit firm's distance with the client is, the greater the cost of the audit. The close proximity of geographic auditing companies and auditors can lead to higher levels of social exchanges between auditors and customers, with geographical proximity leading to greater trust between auditors and senior executives of companies. This can be achieved even in networking, interacting and exchanging social relationships that leads to trust and increasing knowledge and learning of companies. Therefore, it could be expected that the geographical proximity of the audit firm and the firm, would help the auditor to stabilize and the auditors' rotation would decrease. Also, the relative ease of access to corporate information, as well as the greater excellence of the economic and regulatory environment in the region and its impact on companies, should increase the efficiency of local auditing, reduce audit delays, and provide timely audit reports.