The moderating role of audit quality on the relationship between audit report and earnings management

Document Type : Original Article


Basir Institute of Higher Education, Abyek, Qazvin, Iran


The purpose of this study is the moderating role of audit quality on the relationship between audit report and earnings management firms in listed companies in Tehran stock exchange. To achieve this purpose, in calculating Audit Quality like from the Immen and Anis (2020) model with 8 indicators (auditor size, auditor expertise in the industry, auditor experience, auditor partner of the company, change of auditor, auditor tenure, size of company auditor and joint auditor, auditor delay) have used. Sample statistics includes 82 companies during the 2010 to 2019 period. The hypotheses were tested for the first and second models of the study using linear regression and for the third and fourth models with respect to zero and one being dependent on the logistic regression variable and performed by Eviews software. The study results indicate that the auditor 's opinion do not have a significant effect on earnings management, and companies that have a modified auditor 's opinion are not prone to earnings management (optional accruals level) if they have high audit quality; While earnings management has a significant impact on the auditor 's opinion, as well as companies with high earnings management (optional accruals level), they may receive a revised audit opinion if they have a high quality audit.


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