Surveying the Relationship between Auditor's Tenure and Audit Quality with Financial Distress of Governmental Companies

Abstract

Proper information flow in this market leads to take logical and correct decisions behalf participants and finally, it causes economic development and the improvement of social relations. Auditor's opinion can play significant role to take financial decisions by internal and external users. According to this importance, the research tries to survey the relationship between auditor tenure and audit quality with financial distress in state companies. The results indicate that there is a positive significant relationship between auditor tenure and financial distress. On the other hand, according to the second hypothesis, if auditor tenure increases in companies, financial distress will increase.