Abstract

The most important aspect of audit quality management and control may know as audit fees. Audit service fee is a necessary condition for confidence in audit quality.Audit quality of financial statements can create economic value to company. The aim of this study is to investigate the effect of audit quality on audit fees of listed companies in Tehran Stock Exchange. Quality criteria for this research as the audit firm size, auditor industry specialization and auditor tenure has been selected. The formulation of hypotheses and data for 72 companies in Tehran Stock Exchange for the period between 1386 to 1390 were used. To test the hypotheses, multiple regression techniques with panel data methods were used. Results of the study showed that there is a significant negative relationship between audit firm expertise and audit fees. Also, there is a significant positive relationship between auditor tenure and audit firm size and audit fees.