Abstract:

Purpose- The purpose of this study is to investigate the effect of financial distress on audit quality. For this purpose, the data of 227 companies traded in Borsa Istanbul were obtained. Methodology- Correlation analysis was performed on the data obtained, and no autocorrelation was found between the variables. A multiple regression model was generated to test the hypothesis of the study. Findings- According to the findings, a negative and significant relationship was found between financial distress and audit quality. Conclusion- A significant relationship was found between the company size, the ratio of cash flows from operating activities to total assets, and the leverage ratio and audit quality.