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The relationship between the economic status of auditors (revenue of audit firms) and earnings management in companies listed on the Tehran Stock Exchange
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Mohamadhosein Safarzade   , Mohamadreza Asiaie * |
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Abstract: (326 Views) |
Considering the position of the independent auditor,the quality of the audit report, plays a significant role in improving the quality of financial reporting.for this reason, professional authorities and legislators have provided various solutions to improve the quality of auditing, reduce the ability of company managers to manage of earnings, and consequently increase the quality of financial reporting and protect the rights of users of financial statements.Considering the importance of audit quality and its effect on increasing the quality of financial reporting, in this research investigated the impact of economic status of the auditing firm on earnings management as an indicator of measuring the quality of financial reporting. To measure the economic status of the auditor used from the income of the audit institute index and to measure earnings management, used from the indicators of accounting earnings management and real profit management. Using a sample of 105 companies accepted to the stock exchange during the years 1393 to 1400 and using the regression model to analyze the data, research results show that increasing the income of audit institutions It causes an increase in accrual earnings management (accounting earnings management) as well as an increase in real earnings management (earnings management using real activities).
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Article number: 3 |
| Keywords: Auditor's economic status, earnings management, audit quality, audit firms' income. |
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Full-Text [PDF 511 kb]
(80 Downloads)
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Type of Study: Research |
Subject:
Auditing
Received: 2022/12/18 | Accepted: 2023/05/14 | Published: 2023/12/22
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