عنوان مقاله [English]
نویسندگان [English]چکیده [English]
The concern about the effects of long-term auditor-client relationships on auditor independence, audit quality and the quality of financial reporting has caused to enact a series of regulations such as mandatory auditor rotation in order to limit the relationships. But there is no consensus among experts on the benefits of mandatory auditor rotation and researches outcomes are contradictory. This research examines the relation between auditor tenure and earnings management. We used signed discretionary accruals and absolute discretionary accruals measured under the modified versions of the Jones model as surrogates for earnings management. Using a sample of 109 listed companies of Tehran Stock Exchange during 1382-1386 (2001-2007) and using multiple linear regressions, we find a positive and significant relation between audit tenure and absolute discretionary accruals and no relation between audit tenure and signed discretionary accruals.
The findings of this study revealed that increasing the auditor tenure, increases probability of earnings management, whether to reduce or to increase the earnings and its trend depended on specific management purposes.