Asian Journal of Research in Banking and Finance
  • Year: 2015
  • Volume: 5
  • Issue: 12

The Relationship between Audit Quality and Earnings Management in Tehran Stock Exchange

  • Author:
  • Abolfazl Ghadiri Moqaddam1, Shadi La'l2, Razie Shafahi2, Mahdi Poorhasanzade Shargh2, Fahime Bazrafshan2, Mahdi Gohari2
  • Total Page Count: 8
  • Page Number: 101 to 108

1PHD., Department of Accounting, Mashhad branch, Islamic Azad University, Mashhad, Iran

2M.A Student, Department of Accounting, Mashhad Branch, Islamic Azad University, Mashhad, Iran

Online published on 7 December, 2015.

Abstract

This research objective is to study the relationship between audit quality and earnings management in Tehran Stock Exchange. We used the data from 80 firms listed in Tehran Stock Exchange during 2009 to 2013 (400 firm-year). The data was evaluated by using EViews software. In this research we used audit size to measure audit quality and we have used manipulation of real activities in order to measure earning management. The research results are as follows: there is a significant and inverse relation between auditing size and management of general, administrative and sales costs and long term assets management; but there is not any significant relation between auditing size and real earnings management through production costs.

Keywords

Audit quality, Auditor size, Earnings management