Financial expertise of the Audit and Profit Management Committee of the companies admitted to the Tehran Stock Exchange

In financial scandals of companies, one of the most important issues is related to deals with affiliated persons. Transactions with affiliated entities in companies are very common and may be carried out for specific purposes, and the important thing is that the interests of minority shareholders are in the lower priority compared to the interests of the CEO or controlling shareholder (the majority). The purpose of this research is to investigate the role of audit quality on the relationship between affiliated party transactions and earnings management. This research is an empirical research in the field of positive accounting research based on actual information on financial statements of corporations admitted to the Tehran Stock Exchange. This research is based on the relationship between causal variables, in terms of purpose, applied and in terms of method, descriptive survey, which uses historical information of companies and statistical methods to confirm or disprove assumptions. The statistical population of this research includes companies accepted in the Tehran Stock Exchange during the period of 2011-2011, which is the number of ... companies that have been selected by the method of knock-outs of the target population. In this research, panel data was used to estimate the model. Descriptive and inferential methods are used to analyze the obtained data. In this research, Eviews software was used to test the hypotheses. The results of using ordinary least squares regression showed that there is no systematic relationship between earnings management based on accruals and transactions of individuals. Also, there is a meaningful relationship between the affiliated entities' transactions and the actual profit management in relation to the role of audit quality. However, no significant relationship was found between related party transactions and actual earnings management in relation to the role of audit quality.