Thesis:

Smoothing profit and audit fees

Abstract Audit fees are one of the most important issues in the mind of the client and the auditor and should be clearly negotiated. Various factors can affect the audit fee. One of these factors is profit smoothing. The main purpose of this study is to investigate the relationship between profit smoothing and auditing fees in companies listed on the Tehran Stock Exchange. In order to investigate this issue, the research hypothesis was tested based on a statistical sample consisting of 110 companiesp between profit smoothing and auditing fees in companies listed on the Tehran Stock Exchange. In order to investigate this issue, the research hypothesis was tested based on a statistical sample consisting of 110 compa during the years 2016 to 2020 using multivariate regression models. Findings showed that there is a negative and significant relationship between profit smoothing and auditing fees. The results show that auditors receive less audit fees to cover the increased risk of litigation resulting from the use of earnings smoothing as an opportunistic reporting behavior on the Tehran Stock Exchange.

Keywords: Key words: Earnings smoothing, earnings management, auditing fees