SUMMARY
The aim of this study is to evaluate the effect of discretionary accruals on audit quality in 105 companies listed on Tehran Stock Exchange from 2009 to 2013; it has been tested using multiple regressions by controlling determinants of audit quality. In this study, the sample size was selected among 478 companies listed on the Stock Exchange as systematic elimination. There has been used Excel and Eviews software in all statistical techniques. In this study, four criteria have been used as an indicator of audit quality: restated financial statements, type of auditor opinion, auditing institute size and specialization of auditor industry. Accordingly, there were developed four hypotheses. Results of the research hypotheses show a negative relationship between auditing institute size, auditor opinion and specialization of auditor industry with discretionary accruals. There is also a positive relationship between the restated financial statements with discretionary accruals.