Management Change and Audit Opinion: A test of Management - Auditor Alignment Hypothesis

Document Type : Original Article

Authors
1 Dept. of Management and economic Islamic Azad University,Tehran Science& Research Branch
2 Accounting Department , Ali Abad Katoul Branch, Islamic Azad University,
Abstract
The aim of this research is to investigate relationship between management change and audit opinion at private sector of auditing market. Research period  is a 9- year period, from 2004 to 2012. Research method is correlation and  hypothesis test was conducted upon multivariable regression method. Research findings indicate that audit opinion is affected by factors such as management change, audit fees, audit tenure, company size, debt ratio, loss report and profitability ratio. Research results emphasize that management change and number of audit paragraph in audit report have significant and negative relationship. Generally speaking, increase of management change result in decrease of number of audit paragraph.
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