A study on the effects of state ownership on auditing cost

This paper investigates the relationship between state ownership and auditing expenses of 141 Iranian firms from Tehran Stock Exchange over the period 2008-2012. Using stepwise regression technique, the study has detected a negative and meaningful relationship between state ownership and auditing costs. In addition, the study has determined a positive and meaningful relationship between auditing firm size and auditing expenses. Finally, state ownership has negative impact on relationship between auditing firm size and auditing expenses such that with an increase on state ownership, the effects of auditing firm and auditing expenses will be reduced