The Impact of Audit Quality on Earnings Management: An Experimental Study with Evidence from IPO

محورهای موضوعی : Financial Accounting

Maryam Akbaryan Fard ¹ ( Tehran Sciences and Researches Branch, Islamic Azad University, Tehran, Iran )
Hamidreza Vakilifard ² ( Department of Management, Tehran Sciences and Researches Branch, Islamic Azad University, Tehran, Iran )
Hashem Nikoumaram ³ ( Department of Accounting Department, Tehran Sciences and Researches Branch, Islamic Azad University, Tehran, Iran )

تاریخ دریافت : 1397/10/11 تاریخ پذیرش : 1397/12/06 تاریخ انتشار : 1399/04/11

کلید واژه: Discretionary accruals, Auditor Opinion, Earning management, Initial Public Offering, Audit Quality,

چکیده مقاله :

According to a method of earnings management activities that administrators can manage reported earnings from the definition of real activity. In particular they can be located across time and activities in a way that accounting period to achieve a certain revenue target. Conservative attitudes of auditors in presenting their views about the independence of the auditor can considered as a remarkable point in the audit function. The Purpose of this study was to investigate the effect of audit quality on earnings management real time IPO companies. For this purpose, the data of 128 companies listed on the Tehran Stock Exchange during the years 2007 to 2017 were evaluated. The results indicated that the audit quality increases in the year of initial public offerings. The results also demonstrated that there is a significant and positive relationship between the audit fees in the year of initial public offerings and the audit fees in the year after the initial public offerings. Also findings of the research show that earnings management through accrual items has a positive and significant relationship with initial stock offerings.

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