RELATIONSHIP BETWEEN AUDIT QUALITY AND RISK-TAKING IN THE PROCESS OF CREATING VALUE FOR COMPANIES

Abstract

Auditing quality is an issue that is of great regulatory importance and is a pioneer in protecting investors, because if not managed properly, it can lead to mismanagement of minority shareholder resources by managers. The purpose of this study is to investigate the effect of audit quality and risk on value creation. The variables examined for audit quality in this study are the auditor's expertise, the auditor's tenure, the size of the audit firm, the Ownership concentration, and the ratio of non-mandatory members. For this purpose, information about the member companies of the stock exchange during the 5-year period from 2015 to 2020, after performing the necessary statistical tests using linear regression and by 10Eviews and 25SPSS software to the test. We hypothesized. In this study, multivariate regression method has been used as a statistical method. The results show that among the audit quality factors, if the risk is not considered, only the size of the audit firm affects the value of the company, and if the risk of the company is affected, the size of the audit firm, the auditor tenure risk and the risk of the ownership concentration. It can affect the value of a company.