The role of auditing in determining of financial reporting quality is achieved by the auditor's opinion. Therefore, it is always possible that the auditor has failed to perform his or her duties for self-interest and pursue the financial reporting goals of the client to achieve their interests, also Managers in order to prevent the adverse economic consequences of financial reporting in the capital market follow a way for audit opinion shopping or engage in fraudulent activities to hide the low quality of financial statements. Such a phenomenon indicates that the interaction between audit opinion shopping and financial reporting quality.
For this reason, the present study intends to test the above interaction using the simultaneous equations model. The statistical population of the study includes the financial information of firms listed on the Tehran Stock Exchange, which has been tested in the form of panel data during the years 2011-2018 by seemingly unrelated regression method. The findings of study show that there is a significant inverse relationship between audit opinion shopping and financial reporting quality in listed firms. These results can be useful for auditors as well as policymakers and organizations.
Fakhari E, Fakhari H. Audit Opinion Shopping and Financial Reporting Quality: with Simultaneous Equations model Approach. audit knowledge 2021; 21 (82) : 2 URL: http://danesh.dmk.ir/article-1-2523-en.html
