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:: Volume 5, Issue 9 (8-2020) ::
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:   (1785 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 Auditorchr('39')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 Auditorchr('39')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 Auditorchr('39')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 Auditorchr('39')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 287 kb]   (118 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. Valued and Behavioral Accountings Achievements. 2020; 5 (9) :189-224
URL: http://aapc.khu.ac.ir/article-1-740-en.html


Volume 5, Issue 9 (8-2020) Back to browse issues page
فصلنامه دستاوردهای حسابداری ارزشی و رفتاری Valued and Behavioral Accountings Achievements
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