Abstract:This paper investigates the effect of audit quality on real earnings management. Audit quality refers to the size of the audit office. Conceptual framework borrows from agency theory positing that earnings management reflects managerial opportunistic behavior to influence the contractual outcome imposed by stakeholders. The size of the auditors' office represents available resources within the firm that eventually enables the auditor to maintain independence and to invests in auditing techno logy that results … Show more
Set email alert for when this publication receives citations?
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.