The Impact of the level of earning management and audit fees an evidence from ISE

Subject Areas : Management Accounting

فاطمه داروغه حضرتی ¹ , زهرا پهلوان ²

1 - ندارد
2 - ندارد

Received: 2012-01-08 Accepted : 2012-09-05 Published : 2013-03-09

Keywords: Audit Fees, earnings management, Board independence, Profitability,

Abstract :

Audit fees is one of the interesting issues of researchers. Different factors caneffect on audit fees, such as earnings management and board independence. Thefundamental question of this research is, whether there is a relation between earningsmanagement, board independence and audit fees concerning the level of firmprofitability? To this end, the required data were gathered from 57 firms whichaccepted in Tehran Stock Exchange (TSE) from 1382 to 1388. The statistical teqniqueused for examining the hypotheses were multiple regression, one-way ANOVAanalysis. 3 hypotheses were developed to investigate the relation between the level offirm profitability on the relation of earnings management and board independencewith audit fees and comparability of the audit fees in different firms with regard to thelevel of profitability. The results suggest, firms that have higher ratio of outsidedirectors pay lower audit fees. The results also indicate that the higher level ofprofitability, the higher the audit fees.