The relationship between audit quality, debt financing and earnings management in companies listed to the Tehran Stock Exchange

Since that the profit management has a special importance among investors, when the financing is perform via bond issue, having a high-quality audit will add to this importance. Thus, in present research we decided to investigate the relation between audit, financing via bond issue and the profit management. To this purpose, among companies that established in Security and Stock exchange in time period of 2014-2018, we selected 139 companies as research sample. The obtained results by data panel in Eviews software that included our five hypothesizes show that the auditor’s tenure duration, the auditor size and auditor’s profession have a negative relation with the profit management; its means that each of these variables can makes a better control on the profit management. However, the auditor’s independence couldn’t show a significant relation with the profit management and couldn’t have a negative effect on this variable. Finally, we found that the financing via bond issue has a positive and significant relation with the profit management and this result can be very important because by increase the financial lever, the profit management can be created too.