QUALIFIED AUDIT OPINION, ACCOUNTING EARNINGS MANAGEMENT AND REAL EARNINGS MANAGEMENT: EVIDENCE FROM IRAN
Journal Title: Asian Economic and Financial Review - Year 2015, Vol 5, Issue 1
Abstract
This study examines the relationship between qualified audit opinions and earnings management, as measured by discretionary accruals (accounting earnings management) and abnormal production cost (real earnings management), for listed firms on the Tehran Stock Exchange (TSE). For this purpose, four hypotheses are developed and tested by using multiple regressions and sample of 2818 firm-years. The results show that qualified opinions are related to accounting earnings management but are not related to real earnings management. Client financial characteristics, such as profitability, size, experience, type of audit opinion in previous year and prior year loss are determinants of the qualified audit opinion decision.
Authors and Affiliations
Akhgar M. Omid| Assistant Professor in accounting, university of Kurdistan, Kurdistan, Iran
Keywords
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