The impact of auditor-client range on audit quality and timely auditor report

Abstract

This study delves into the dynamic relationship between auditor-client proximity and its effect on audit quality and the punctuality of auditor reports within companies trading on the Tehran Stock Exchange (TSE). A comprehensive analysis was conducted on a sample of 108 businesses, spanning the years 2013 to 2019. Employing an innovative methodology, our findings reveal that the geographical distance between auditors and clients fails to exhibit statistically significant correlations with audit quality (Almagsoosi et al., 2022). Instead, our research emphasizes the crucial role of proximity in fostering productive conversations between auditors and clients, leading to more punctual audit reports. Notably, this study pioneers the investigation of the spatial interval between auditors and clients, marking a significant contribution to the field. By elucidating the implications of engaging nonlocal auditors, our research not only contributes to innovation but also introduces novel insights into the realm of audit quality and timely reporting practices, expanding the horizons of auditing research