Accounting and Auditing Research

Accounting and Auditing Research

The Effect of Audit Quality Based on Audit Rankings on Accrual and Real of Earnings Management in Initial Public Offering

Document Type : Original Article

Authors
naser kalbasi
Zahra Lashgari
Central Tehran Branch, Islamic Azad University, Tehran, Iran
10.22034/iaar.2020.107130
Abstract
The purpose of this study is to investigate the activities related to the management of earnings by analyzing the quality of the audit at the time of Initial public offering. In this regard, the relationship between profit management in the Initial public offering of companies audited by first-class audit firms in the ranking of the Iranian public accountant’s community and other companies is compared.
 The statistical population of this study is the initial supply companies in stock and overseas which have been accepted in the stock exchanges and overseas from 2005 to 2017.
Evidence suggests that the shares of companies first disclosed and audited by first-level audit firms have a lower level of Accrual and real of Earnings management.
Keywords
Audit Quality
Earnings Management
Initial Public Offering
Accounting and Auditing Research
Volume 12, Issue 45
Spring 2020
Pages 171-186