Identifying and Ranking Factors Influencing Auditor Selection Using the Logit Model

Independent auditors play a pivotal role in validating financial statements and disseminating corporate accounting information. The selection of an independent auditor is considered the most critical decision for shareholders in endorsing the credibility of financial statements. This study review and analysis the factors influencing auditor selection using a logit model. From the perspective of objectives, the research is applied, and methodologically, it is correlational of a causal nature. The statistical population comprises companies listed on the Tehran Stock Exchange, and through systematic elimination sampling, 130 companies were selected as the sample. The study period spans seven years, from 2017 to 2023. Data were collected through a library-based method, and Stata software was employed to test the hypotheses. The results of the study show that audit opinion and earnings management have an inverse effect on auditor selection. In contrast, auditor industry expertise, government ownership, and return on assets have a direct positive effect on auditor selection.