The Relationship between Audit Quality and Earnings Management in Tehran Stock Exchange Moqaddam Abolfazl Ghadiri1, La'l Shadi2, Shafahi Razie2, Shargh Mahdi Poorhasanzade2, Bazrafshan Fahime2, Gohari Mahdi2 1PHD., Department of Accounting, Mashhad branch, Islamic Azad University, Mashhad, Iran 2M.A Student, Department of Accounting, Mashhad Branch, Islamic Azad University, Mashhad, Iran Online published on 7 December, 2015. Abstract This research objective is to study the relationship between audit quality and earnings management in Tehran Stock Exchange. We used the data from 80 firms listed in Tehran Stock Exchange during 2009 to 2013 (400 firm-year). The data was evaluated by using EViews software. In this research we used audit size to measure audit quality and we have used manipulation of real activities in order to measure earning management. The research results are as follows: there is a significant and inverse relation between auditing size and management of general, administrative and sales costs and long term assets management; but there is not any significant relation between auditing size and real earnings management through production costs. Top Keywords Audit quality, Auditor size, Earnings management. Top |