Earnings Management and Audit Opinion: Evidences of Private Audit Firms

Subject Areas : Management Accounting

بهمن  بنی مهد ¹ (ندارد)
یحیی  حساس یگانه ² (ندارد)
نرگس  یزدانیان ³ (ندارد)

Received: 2013-07-22 Accepted : 2013-09-11 Published : 2014-06-15

Keywords: Key Words: Earnings Management, Audit Report, Audit Fees, private audit firms,

Abstract :

AbstractThis study investigates relation between earnings management and audit opinion inprivate sector of auditing. The sample period is 10 years from 2003-2012. The number ofsample is 106 listed firms of Tehran Stock Exchange (TSE). Using correlation method andmultiple regression, the results of this study show that there is a relation between earningsmanagement, size, profitability, debt ratio, audit fees, governmental ownership and qualifiedaudit opinion paragraphs in the auditor's report. Moreover, research findings indicate thatthere is no relation between firm complication, auditor change, management change withqualified audit opinion paragraphs. Research evidence claim that positive relation betweenearnings management and qualified audit opinion paragraphs can be the sign of increase inaudit quality in private sector of auditing.