INVESTIGATING THE EFFECT OF BUSINESS STRATEGY AND INTERNAL CONTROL ON AUDIT QUALITY

Purpose: Auditing will improve the quality of financial information. However, in today's audit quality affected by the environment. The purpose of this study to investigate the effect of business strategy and internal control on audit quality in listed companies in the Tehran Stock Exchange. Methodology: This is applied research in terms of its purpose and in terms of its method is correlation analysis with the regression approach. For this inference method, this research is descriptive-analytic. For this important statistical society, companies listed in the Tehran Stock Exchange during the years 2010-2017 for 8 years have the necessary conditions. According to the constraints defined in the research, companies with qualifying conditions of 107 companies and 856 years-company of observation were collected. To test the hypotheses, the multivariate regression technique was used using panel data. Main Findings: The business strategy modifies the relationship between the auditor's specialty in the industry and the internal control of audit quality. Implications: The control structure can provide an understanding of the difference between the business strategy and its diversion, which is necessary for the auditor's expertise in the industry. It is proposed to combine business strategy and audit planning, we can identify the weakness of the internal control of the system in order to improve the quality of the audit and create value for the stakeholders. Novelty: The study considered the effects of business strategy on the relationship between internal control and audit quality.