EVALUATION OF AUDIT FEES AND FREE CASH FLOW

Audit fees companies with free cash flows can be changed according to agency problems. This study shows how the hypothesis of free cash flow of a company increases the audit fees. The point of this research is to determine whether there is a meaningful connection between free cash flow and audit fees. Therefore in order to determine the connection, the data's have been collected from fifty companies who are members of the Tehran Stock Exchange during the years 2008 - 2013 together from the Tehran Stock Exchange site. The statistics techniques are used for hypothesis test, regression of different kinds. The present research shows three hypothesis with respect to high free cash flow, debt and dividend, out of which the audit fees have been paid. The result shows that the companies with high free cash flows pay higher audit fees. Alternatively the result shows the companies with debt and small dividends pay less audit fees.