The Effect of Accounting Comparability on Financial Reporting Quality with Emphasis on Audit Quality

Subject Areas :

Zohreh Hajiha ¹ , hasan chenari ²

1 - Department of Accounting, East Tehran Branch, Islamic Azad University, Tehran, Iran
2 - Department of Accounting, Financial Sciences Faculty, Kharazmi University, Tehran, Iran

Received: 2023-01-06 Accepted : 2023-03-11 Published : 2023-03-21

Keywords: Financial Reporting Quality, Audit Quality, Key words: Financial Statement Comparability,

Abstract :

AbstractThe aim of this study was to investigate the effect of comparing financial statements on the quality of financial reporting with emphasis on audit quality. It is argued that comparability increases the usefulness of accounting information and makes it possible to identify similarities and differences between economic events for users of financial statements.For this purpose, information on the financial statements of 103 companies has been collected. Multivariate regression with panel data has been used to test the hypotheses.The findings of the research hypothesis test show that the comparability of financial statements enhances the quality of financial reporting, but the moderating role of audit quality is ineffective in this relationship.Managers' ability to evaluate the company's performance and predict future events and to provide information on reliable forward-looking estimates that can be used to report higher quality commitment items increases.

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