The Presentation of the Market Perception Pattern from Audit Quality

Document Type : Original Article

Authors

1 Faculty Member of Accounting, Islamic aAzad University, Garmy, Iran

2 Department of Accounting, Ghaem shahr Branch, Islamic Azad University, Ghaem shahr, Iran

Abstract

This research model deals with market perceptions of audit quality. The actual quality of audit and the perception of audit quality are two different concepts. The perception of audit quality is based on user's perceptions and inferences of financial statements, while the actual audit quality notes the auditor's ability to detect and report major accounting distortions. The research method is descriptive survey and its category is applied developmental research. The study population are teachers, accountants, CPAs, auditors and managers of audit firms, financial managers of listed companies on the Stock Exchange of Tehran. The sample population are 217 who were randomly selected. Data were collected by questionnaire made by the researcher that its validity and reliability was approved by factor analysis and Cronbach's alpha coefficient. To examine the deletion or confirmation of the statements of the questionnaire in two stages of the binomial test, and to identify the factors affecting the market perception, the quality of the audit was used as exploratory factor analysis and confirmation of the first and second order. The results of the research showed that the four factors affecting the market perception from audit quality which are the audit process, professional people and the structural characteristics of the company and the audit reporting results and they affect the market perception of audit quality by 36 effective variables.

Keywords

Accounting and Auditing Research
Volume 12, Issue 47
October 2020
Pages 133-152

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