Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

Investigating the effect of voluntary and mandatory audits on earnings management according to the size of auditing firms in companies listed on the Tehran Stock Exchange

Document Type : Original Article

Author
Mohsen haghverdizadeh
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Abstract
Financial reporting is one of the most important products of the accounting system, the main purpose of which is to provide the necessary information to evaluate the performance, profitability of companies and predict future cash flows and the like. One of the items offered in the case of profit and loss is net profit. The calculation of net profit is one of the most important accounting indicators and a broad source of information in the accrual system and is influenced by the accounting procedures chosen by management. In this study, the effect of voluntary and mandatory auditing on earnings management according to the size of auditing firms has been studied. In this regard, among the companies listed on the Tehran Stock Exchange using the systematic elimination method, 108 companies as a research sample. were chosen. Multivariate regression method was used to test the hypothesis. The research period is from 1390 to 1397. The results of the study indicate that auditing by large audit firms reduces profit management.
Keywords
Profit management
audit firm size
audit quality