Audit report is the consequence of auditing process and it is a major instrument of communication between auditor and financial statements user. This study attempts to examine the correlation between qualified audit report and share prices and returns in order to test information content of qualified audit report. A market-based study conducted on the qualified audit reports of the shareholding companies in Iran during the period 2005 to 2009. The result of the survey indicated that qualified audit opinion has no significant effect on share prices and returns. In other word, there is no information content in qualified audit opinion in Iran. This conclusion may suggest that the audit report’s users’ do not understand its meaning or appreciate its value.

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