The Relationship between Hours of Audit and Earnings Management

Abstract

The main goal of the research is studying the relationship between the hours of audit and earnings management. As the auditors will recognize the earnings management through increasing the hours of audit in investigation of the statement, in this research the relation between the hours of audit and the earnings management has been studied. In order to evaluate the hypothesis, a sample includes of 84 listed companies on Tehran Stock Exchange during 1385-1387 are designated as the model, applying the Jones model and the models of earnings management the audited statements of the designated companies were studied. The result shows a significant and reversible relationship

Keywords

• Earnings Management
• Hours of Audit
• Abnormal Accruals