Audit quality, audit opinion, and earnings management: Indonesian evidence

Krismiaji, Krismiaji; Sumayyah, Sumayyah

doi:10.36067/jbis.v4i2.141

Cited by 2 publications

(3 citation statements)

References 26 publications

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“…The status of "unqualified opinion (Unqualified Opinion)" indicates that the company's financial statements do not contain data suspected of being problematic or that can manipulate financial data. This study confirms the results of previous studies belonging to (Krismiaji and Sumayyah, 2022), which concluded that there is a significant relationship between audit opinion and earnings management.…”

Section: Discussionsupporting

confidence: 92%

“…However, investigations of the direct relationship between these variables produce inconsistent findings. The study of (Krismiaji and Sumayyah, 2022) confirms that the relationship between audit opinion and earnings management is positive and significant. Nevertheless, the research by (Devie et al, 2019) indicates that earnings management strategies do not influence audit opinion.…”

Section: Introductionsupporting

confidence: 57%

“…Previous literature studies have explained the relationship between audit opinion and earnings management, but there are no clear and consistent conclusions (Lu, 2020). (Krismiaji and Sumayyah, 2022) Research reveals that these two variables are positively related. On the other hand, research by (Devie et al, 2019) indicates that earnings management practices do not influence audit opinion.…”

Section: Agentmentioning

confidence: 93%

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Earnings Management Factors In The Consumer Goods Industry During The Covid-19 Pandemic

Azizah,

Mappanyukki

2023

Jurnal Akuntansi

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The global proliferation of the Covid-19 pandemic has adversely impacted public health, society, and the economy. To face the pandemic, managers are frequently required to make highly complicated decisions about financial reports. Earnings management occurs when managers modify financial statements for the advantage of stakeholders by evaluating opportunities in certain business activities. This paper investigates the impact of audit opinion and tax incentives on earnings management and leverage as a moderating variable among consumer goods manufacturing companies. A purposive sampling technique was performed to select 15 manufacturers in the consumer goods industry subsector listed on the Indonesia Stock Exchange between 2019 and 2021, which matched the research criteria. This study's findings indicate that audit opinion and tax incentives influence earnings management among consumer goods companies in the COVID-19 pandemic era. Moreover, leverage was a moderating variable for audit opinion and earnings management, but it did not moderate the effect of tax incentives on earnings management.

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Section: Discussionsupporting

confidence: 92%

Section: Introductionsupporting

confidence: 57%

Section: Agentmentioning

confidence: 93%

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Earnings Management Factors In The Consumer Goods Industry During The Covid-19 Pandemic

Azizah,

Mappanyukki

2023

Jurnal Akuntansi

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Influence of Audit Firm Attributes on Earnings Management and Audit Quality of Listed Nigeria Manufacturing Firms

Olagunju,

Oluwakayode,

Adenle

et al. 2024

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The influence of audit attributes on earnings management and audit quality was examined in this study. A causal research design was employed in this study. The study population comprises all the quoted manufacturing firms in Nigeria, of which 30 were purposively selected as a sample size from the manufacturing sector covering a period of 12 years ranging from 2010–2021. The data utilized for this study were obtained from the annual reports of the selected firms. Descriptive statistics and panel regression analysis were used to analyse the data. Audit attributes were measured with audit opinion, audit switching and audit tenure, whereas the dependent variables were proxy by discretionary accruals and audit fees. The outcome of the analysis discovered that audit opinion, audit switching and audit tenure all have negative and significant relationships with discretionary accrual evidenced by t-statistics (−2.36, −2.06, −3.24) and p-values of (0.018, 0.004, 0.002) correspondingly. Audit opinion also has a positive significant connection with audit fees. Likewise, audit switching and audit tenure have negative and significant relationships with audit fees, and they are all evidenced by t-statistics of (2.01, −2.70, −2.80) and p-values of (0.004, 0.007, 0.005), respectively. The study concludes that audit attributes are important in determining the extent of earnings management and audit report quality. The study recommends that companies should ensure that the auditor is not biased in his opinion because this will affect the quality of the audit report. Audit tenure and audit switching should also be done as when due.

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Audit quality, audit opinion, and earnings management: Indonesian evidence

Cited by 2 publications

References 26 publications

Earnings Management Factors In The Consumer Goods Industry During The Covid-19 Pandemic

Earnings Management Factors In The Consumer Goods Industry During The Covid-19 Pandemic

Influence of Audit Firm Attributes on Earnings Management and Audit Quality of Listed Nigeria Manufacturing Firms

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