Document Type : Research Paper


1 Associate Professor ,Accounting ,Alzahra University

2 Ph.D. Student of Accounting, Shahid Bahonar University of Kerman, Kerman, Iran

3 PhD Student of Accounting, Faculty of Management and Accounting, College of Farabi, University of Tehran, Qom, Iran


The purpose of this research is to investigate the moderating role of conservatism on the relationship between audit quality and earnings management. The current research is analytical and correlational. Also, this research is considered a quantitative research based on the nature and characteristics of the data used to analyze the hypotheses. In order to collect data, first the library method and then the statistics provided by the Tehran Stock Exchange Organization were used. The findings obtained from the regression model on a sample of 110 companies admitted to the Tehran Stock Exchange in the 8-year period from 2015 to 2022 show that audit quality has an inverse and significant relationship with profit management. On the other hand, it was found that conservatism has an effect on the relationship between audit quality and profit management. It is concluded that conservatism leads to the reduction of profit management by identifying losses on time and delaying the recognition of profits. Since the audit quality has reduced the information asymmetry, this will reduce profit manipulation through profit management. In this connection, conservatism plays an important role in limiting managers' opportunistic reporting. Also, conservatism reduces the company's incentives for profit management, which reduces biases caused by opportunism in accounting. Therefore, it is expected that conservatism plays a moderating role on the relationship between audit quality and earnings management, the findings of the research also confirm these expectations.


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