Javad Forouzandeh - Assistant Prof., Department of Accounting, Dolatabad Branch, Islamic Azad University, Isfahan, Iran.
Naser Izadinia - Associate Prof., Department of Accounting, University of Isfahan, Isfahan, Iran.
Saeed Daei-Karimzadeh - Associate Prof., Department of Accounting, Isfahan (khorasgan) Branch, Islamic Azad University, Isfahan, Iran.

Considerable researches have been devoted to predicting financial distress by using financial ratios and there is a little knowledge about this issue and how report paragraphs and information may contribute to predict companies’ insolvency. The major purpose of this study is to explore the effects of audit report types, pre-opinion paragraphs, special emphasis paragraphs, and other explanatory paragraphs on financial distress among firms listed on the Tehran Stock Exchange. The research period is from ۲۰۱۱ to ۲۰۱۸ and the sample consists of ۱۰۷ firms which are selected using a purposeful sampling method. Results of multiple regression analysis shows there is not any significant association between audit report type, the number of pre-opinion paragraphs, special emphasis paragraphs and other explanatory paragraphs with financial distress.

Audit Report Type, Audit Report Paragraphs, Explanatory Paragraphs, Financial Distress