Investigating the Relationship between the Type of Auditors and Disclosure Domain Quality among Pharmaceutical Companies Listed in Tehran Stock Exchange

Abstract

This research examines the relationship between the type of auditor's report and disclosure domain quality of the pharmaceutical companies listed in the Tehran Stock Exchange. The research method is inductive and is categorized in applied research according to research purpose. Research method and data analysis method is done using multiple correlation coefficient models and multiple regression. The statistical population of this study was all pharmaceutical companies listed in Tehran Stock Exchange during the years 2010-2014, which 488 companies have been selected. In this research, CD-ROMs and statistical software of Tehran Stock Exchange and other software available in Tehran stock exchange have been used to collect data in the present research. To document the results, statistical analysis and presenting final solutions, the researcher analyzed the questions and hypothesis using a statistical method as well as 7 Eviews software. The results of the main hypothesis of research show that there is a significant relationship between the type of audit report and disclosure domain quality in pharmaceutical companies. Given that disclosure domain quality of accounting information, documentation and clarification by the client after the issuance of the draft report and the client's attempt to justify the auditor are effective factors in disclosure domain quality, since increased disclosure quality has improved the financial reporting as well as the quality of the auditors' opinion. Increasing the quality can provide the necessary background for ease of implementation of the audit process, reduce audit risks, and ultimately reduce the auditors 'pessimism to the investigative body, each of which can more accurately report auditors' reports more qualitatively. The results also show that Audit Report has a higher degree of desirability to the extent that managers cooperate with the auditors in providing relevant and quality information and provide realistic and accurate information without any distortion or fraud and will show audit reports more qualitatively.