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Capital audit market: its importance and role in the modern economy.
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Jamal Jamali   |
| Department of Accounting, Payam Noor University, Tehran, Iran. , j_jamali@pnu.ac.ir |
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Abstract: (4 Views) |
This study aims to examine the importance and role of the audit market in the contemporary economy, focusing on the impact of auditing on financial transparency, reducing information risk, lowering the cost of capital, enhancing investor confidence, and improving economic efficiency. This research utilizes an analytical-descriptive method, based on previous studies and data collected from reputable academic articles. A systematic review of studies related to the impact of auditing on the economy has been conducted.
High-quality auditing can reduce companies’ cost of capital by an average of 15–20%. This reduction stems from increased investor confidence in financial reports and reduced information risk. Countries with stronger regulatory and auditing systems attract, on average, 27% more foreign investment. The audit market, as one of the core pillars of the economic system, plays a crucial role in strengthening public trust, enhancing financial transparency, reducing information risks, and attracting investments. Contribution to Knowledge The impact of the audit market on various aspects of the economy contributes to a better understanding of the vital role of auditing in improving economic performance. Additionally, the use of advanced technologies and the strengthening of regulatory systems are proposed as key factors for increasing the efficiency of the audit market.
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Article number: 24 |
| Keywords: Auditing, audit market, economy, capital, modern. |
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Full-Text [PDF 507 kb]
(1 Downloads)
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Article type: Research |
Subject:
General
Received: 2025/05/9 | Accepted: 2025/08/25 | Published: 2026/01/30
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