The common effects of social identity and institutional pressures on audit quality in companies listed in Tehran Stock Exchange

Resumo

Financial statements are considered as the most important set of financial information. But the key issue is the uncertainty about the reliability of the mentioned information which comes from conflict of interests. In addition to conflict of interests, other issues such as lack of users’ direct access to information have led to the demand for independent audit services. Indeed, the role of auditing is to assess the quality of information for users. the present study aims to investigate the impact of the relationship between social identity and institutional pressures on audit quality. The research statistical population comprises the companies listed in Tehran Stock Exchange. This research is an applied study in terms of purpose and the hypotheses have been analyzed using Eviews software. After data analysis, the research hypotheses were confirmed, meaning that normative, compulsory and imitative pressures and social identity have a significant positive impact on audit quality.