The relationship between audit quality and earnings management: evidence from Jordan

Abstract EN

Audit plays a major role in creating confidence in the financial statements, which influences the decisions of its users.

which led to increased interest in the concept of audit quality and measuring its impact on earnings management practices.

this study aims to examine the impact of audit quality on earnings management for industrial companies listed on the ASE for the period 2015-2019.

to measure audit quality, three indicators were used, audit firm size, audit fee, and non-audit service fee.

the results of the analysis showed that audit fees are significantly negatively related to earnings management.

as for the size of the audit firm, it is significantly positively related to earnings management.

on the other hand, non-audit services have insignificant impact on earnings management.