Effectiveness of Manager’s Performance on Independent Auditor’s Opinion in Listed Companies of Tehran Stock Exchange

Document Type : Research Paper

Authors

1 Assistant Prof., Accounting, University of Kordestan, Sanandaj, Iran

2 Msc, Accounting, Jahan Foulad Gharb Complex Co., Kermanshah, Iran

3 Msc, Accounting, Dep. of Accounting, Science and Research Branch, Islamic Azad University, Kermanshah, Iran

Abstract

Abstract: The auditor’s report, in decision making process of financial statements’ users is considered as a profitable means; one of these effective factors on independent auditor’s opinion is management performance of entity. Moreover, performed studies indicate the effect of management performance on independent auditor’s opinion. The purpose of this study is investigating effectiveness of management performance, such as, profitability, dividend per share, the rate of return on owner’s equity, assets return rate, on independent auditor’s report and clauses of qualified report. Resultant findings of testing hypothesizes indicate that the effect of dividend per share measures on accepted report of independent auditor and, in addition, profitability scales has influenced   the clauses of investment entry by flat cost technique , instead of  net cost. Measures of dividend per share, assets return rate, and the rate of return on owner’s equity altogether, affect the clause of taking verification of qualified report of independent auditor. According to research findings, one can state, improving management performance will reduce issuing qualified report. As a result, measures of accounting of management performance will affect the independent auditor’s opinion.

Keywords

References

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