The Impact of Audit Quality and Financial Statement Fraud on the Choice of Earnings Management Behaviors

• Main Authors: Pei-Shih Nian, 粘佩詩
• Other Authors: 許永聲
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/23761043208892970377

碩士 === 國立中興大學 === 會計學研究所 === 100 === This paper will discuss the substitution among accrual-based earnings management and real earnings management. Moreover, take the firms which had the fraud as our samples from 2004 to 2010 in Taiwan Stock Exchange based on the timing of the fraud event, and then choose the fraud firms and the non-fraud firms on the percentage of one to two as the control group. This paper includes discussions on the financial statement fraud effects on the relationship among the two methods of earnings management. Finally, this paper will explore whether or not the audit quality would affect the choice of fraud firms’ earnings management behaviors. The empirical results show that accruals-based earnings management and real earnings management are in effect substitutive. Fraud firms prefer to engage in real earnings management and accruals-based earnings management. Finally, audit quality would not affect the choice of fraud firms’ earnings management behaviors.