The purpose of current study is to explore the impact of auditing on stock prices of Amman stock market. Study is conducted based on primary data collected from finance managers of listed companies of Amman stock market, about audit and its impact of stock prices. Impact of audit is indicated in terms of audit quality and its effect on financial performance of firm because stock prices are an indicator of financial performance of firms. To find out the relationship among key variables of study, audit quality and stock prices, hypotheses are proposed as well as tested using SPSS and AMOS. Descriptive analysis, factor analysis and structural equation modeling is implemented to find out the results. It is found that audit has a direct impact on stock prices of firms in Amman stock market, while improved audit quality results in improved financial performance of the firm indicated in their stock prices.
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