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:: Volume 5, Issue 9 (8-2020) ::
aapc 2020, 5(9): 189-224 Back to browse issues page
The Impact of Management Incentives on Earnings Management and Audit Committee Communication with the Auditor on the Quality of Auditor's Judgment
Mohammad Reza Nik Bakht 1, Amir Hossein Hossein Pour2
1- Associate Professor of accounting, Faculty of Management, University of Tehran, Iran(Corresponding author) , mnikbakht@ut.ac.ir
2- Ph.D Student of Accounting,Faculty of Management, University of Tehran, Iran (amhosseinpour@Yahoo.Com)
Abstract:   (4512 Views)
Increasing Emphasis On Internal (Charter Of The Audit Committee) And External (Public Company Accounting Oversight Board Standards) Laws And Regulations Regarding The Audit Committee Communication With The Independent Auditor, In Order To Improve The Independent Auditor Performance And The Quality Of Financial Reporting, This Study Examined The Effect Of Management Incentives On Earnings Management And The Audit Committee Communication With The Independent Auditor On The Quality Of Auditor's Judgment. It Should Be Noted That, The Research Method Is Experimental, Which Is Conducted Through A 2*2 Between-Subjects Experiment, With Experimental Design Post Test With Control Group, Consisting Of The Variables "Management Incentives On Earnings Management" And "Audit Committee Communication With The Independent Auditor". Participants In The Test Are Managers Of Audit Firms And This Research Were Conducted In Year 2019. Statistical Test Method Is Also MANCOVA.
The Results Of The Analysis On The Data Extracted From 64 Managers Of Audit Firms, Indicate That "Management Incentives On Earnings Management" And "Audit Committee Communication With The Independent Auditor" Has A Positive And Significant Effect On The Quality Of Auditor's Judgment And Also The Interaction Of "Management Incentives On Earnings Management And Audit Committee Communication With The Independent Auditor" Has A Positive And Significant Effect On The Quality Of Auditor's Judgment. Finally, It Was Concluded From The Results Of The Study That According To Source Credibility Theory, When There Are High Management Incentives On Earnings Management, Audit Committee Communication With The Independent Auditor Has A Positive And Significant Effect On The Quality Of Auditor's Judgment.
Keywords: Management Incentives on Earnings Management, Audit Committee, the Quality of the Auditor's Judgment, Competing Preferences, Information Source Credibility.
Full-Text [PDF 316 kb]   (844 Downloads)    
Type of Study: Applicable | Subject: Special
Received: 2019/11/3 | Accepted: 2020/01/3 | Published: 2020/08/22
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Nik Bakht M R, Hossein Pour A H. The Impact of Management Incentives on Earnings Management and Audit Committee Communication with the Auditor on the Quality of Auditor's Judgment. aapc 2020; 5 (9) :189-224
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Volume 5, Issue 9 (8-2020) Back to browse issues page
دوفصلنامه علمی حسابداری ارزشی و رفتاری journal of Value & Behavioral  Accounting
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