Abstract

The purpose of this study is to examine the effect of audit quality on tax avoidance. For this purpose, data from 160 companies traded on Borsa Istanbul from 2009 to 2022 was used. In the study, auditor size, audit tenure, and auditor rotation were used to measure audit quality. In measuring the tax avoidance variable, book-tax differences (BTD) were utilised. Stationarity and multicollinearity analyses were carried out to test the validity and reliability of the variables. There is no unit root or multicollinearity between the variables included in the analysis. The pooled OLS estimator with robust standard errors was used in the research. According to the findings obtained from the regression analysis, a significant relationship was detected between the auditor size used in measuring audit quality and tax avoidance. In addition, the control variables included in the analysis (return on assets ratio, financial leverage ratio) were found to have an effect on tax avoidance.