A comparative study of the relationship between audit quality and earnings management in the markets of Iraq and Oman

Yaqdhan Abd Ali Kareem Wahab, Mohammad Ali Bagherpour Velashani, Mahdi Salehi

Article ID: 2813
Vol 7, Issue 3, 2023

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Abstract


The present study investigates the relationship between audit quality and earnings management in banks listed on the Stock Exchange of Iraq and Oman. This paper used audit firm size, auditors’ industry expertise, audit report timeliness, auditor change, and auditors’ opinions to measure audit quality. Financial statements, notes attached to financial statements, and reports of independent auditors of 28 banks listed on the Iraqi Stock Exchange and 8 banks listed on the Oman Stock Exchange during the financial period of 7 years (2015 to 2021), and hypotheses were tested using EViews software and panel data. The results of the hypothesis testing showed no significant relationship between the firm size and the auditors’ change and earnings management for both countries (Iraq and Oman). This is while the relationship between the auditor’s industry expertise, the timely presentation of the audit report, and the auditor’s opinion and earnings management for both countries (Iraq and Oman) is negative.


Keywords


independent audit quality; earnings management; audit committee

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References


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DOI: https://doi.org/10.24294/jipd.v7i3.2813

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