Journal of Accounting and Management Vision

Journal of Accounting and Management Vision

Investigating the relationship between the independence of the audit committee and the expertise of the auditor in the industry with profit management in companies admitted to the Tehran Stock Exchange.

Document Type : Original Article

Authors
halime rezaee
aliasghar taherababdi
Department of Accounting, Kangavar Branch, Islamic Azad University, Kangavar, Iran.
Abstract
Auditing can be one of the ways to prevent and reduce profit management. Industry-specific auditors play an important role in overseeing the financial reporting process. Industry-specific auditors may limit earnings management not only through the audit of financial statements but also through their interactions with internal clients and corporate governance mechanisms that include board independence. . The purpose of this research is to investigate the influence of audit committee independence and auditor expertise in the industry on profit management in companies listed on the Tehran Stock Exchange. The descriptive-survey research method is correlational in terms of the relationship between variables, and it is applied in terms of purpose and post-event in terms of event. The statistical research population of companies admitted to Tehran Stock Exchange and the studied sample includes 140 admitted companies during the years 2015 to 2019. The regression method and panel data as well as the fixed effects model were used to process and test the hypotheses. The results obtained from the analysis of the hypotheses showed that the independence of the audit committee has a positive and significant relationship with profit management, and the auditor's expertise in the industry has a negative and significant relationship with profit management.
Keywords
Audit committee independence
auditor expertise in the industry
profit management

Subjects