An Empirical Analysis on the Impact of External Auditing Quality on the Earnings Management of the Iraqi Industrial Companies under financial for the period 2010 to 2017

Rahman , Nahla Ghalib Abdul ^[2] ; Flayyih, Hakeem Hammood ^[1] ; Salih , Jalil Ibrahim ^[3]
1. [1] University of Baghdad
  
  University of Baghdad
  
  Irak
2. [2] Lecturer at Southern Technical University, Technical Institute of Basra, Iraq
3. [3] Lecturer at Southern Technical University / Technical College of Administration, Basra, Iraq.
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Localización: Estudios de economía aplicada, ISSN 1133-3197, ISSN-e 1697-5731, Vol. 39, Nº Extra 11, 2021 (Ejemplar dedicado a: Special Issue on Financial Crises and its effect on the economics of the countries)
Idioma: inglés
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Resumen
- This study intends to recognize the rate at which Earnings Management (EM) is practiced by Iraqi industrial organizations registered in the Iraq stock exchange and also to distinguish the most essential factors that influence the Earnings Management (EM) practices through the audit quality. This study also intended to distinguish the type of correlation between the characteristics of auditing quality. This study additionally aimed to distinguish the type of correlation between the characteristics of auditing quality and Earnings Management (EM). A model was built to achieve the objective of that study of measuring the correlation between auditing quality and Earnings Management practices. Different statistical methods were employed such as the Binomial Test utilized for the first major silver test, also the Binary Logit test for the other five hypotheses. The results of the research showed that there is a need to establish an oversight committee is working to provide an environment of high-quality auditing work in order to minimize undesirable practices such as the practice of managing earnings. Additionally, the findings indicate the need to educate investors and managements on the adverse effects of management practices profits and making right decision for investment.