Document Type : Original Article
Ph.D. Student, Accounting Department, South Tehran Branch, Islamic Azad University, Tehran, Iran
Associate Professor, Accounting Department, South Tehran Branch, Islamic Azad University, Tehran, Iran.
Associate Professor at Islamic Azad University, South Tehran Branch, Tehran, Iran
The role of firm managers in improving earnings management reliability is essential considering the significance of audit quality in firm profits. A study was conducted on the role of related-parties transactions and corporate governance in reducing the manager’s opportunistic behaviors as a result of accrued and real earnings. Related-parties transactions are quite prevalent among the firms and might pursue specific objectives; the important point is that minority shareholders’ interests are held at a lower priority compared to the controlling (majority) shareholder’s or the CEO’s interests. present study aims to propose an optimal model to identify earnings management in firms listed by Tehran Securities and Exchange Organization using quantified audit quality tools and techniques. The study is an empirical study in the field of positive accounting research and is based on real data obtained from the financial statements of firms listed by the Tehran Securities and Exchange Organization. The study is causal in terms of the relationship between the variables, applied in terms of the purpose, and a descriptive survey in terms of method, in which firms’ record histories and statistical methods are employed to confirm or reject research hypotheses. The study’s statistical population consists of the firms listed by Tehran Securities and Exchange Organization throughout 2009-2018, which includes 420 firms that were selected from the population through elimination. Besides, the research has used panel data for model estimation. Data were analyzed through both inferential and descriptive methods. The present research has used the appropriate statistical software to test the hypotheses