The Relationship between Auditor Quality and Accrual Reliability



This study investigates the relationship between Auditor Quality and Accrual Reliability. To determinate of auditor quality, using two metrics of Auditor Size and Auditor Tenure, and following Richardson, we use accrual persistence for measure of accrual reliability. In this study, we investigated the listed companies in Tehran stock exchange, over the period of 1380-1386. For testing hypothesis, the multiple linear regression and measurement method of Cross-sectional are used. We find evidence that reported accruals audited by higher-quality audit firms have a more persistence coefficients compared to reported accruals of companies audited by lower-quality audit firms, and finally have a more accrual reliability.