M.A. Thesis:

Audit tenure٫ audit rotation and earnings management

Previous studies on the occurrence of earnings management it shows that companies are used two methods actual earnings management and accrual-based earnings management to manipulate earnings. Different earnings management practices lead to the disclosure of false information and therefore does not provide actual data firms. Also, the stock exchange in 2007, Approved the audit firm instructions to exchange trusted Which aims to designated improve the quality of financial reporting. In accordance with this instruction, Auditor tenure limit is required change the auditors at intervals up to 4 years. According to different points of view about the impact of tenure on earnings management and change auditing requirements, this study examines the impact of mandatory rotation of auditor tenure and earnings management is a different species. The present research is applied and the required information has been extracted from the financial statements of listed companies. Using the sample of 135-stock company during the period 2009-2015. Results shows that auditor tenure increases, earnings management (management accounting and real profits) decrease that opinion statistically significant of the does not have. The results also show With the change auditing requirements,increase accounting earnings management and actual earnings management.

Keywords: Mandatory rotation of auditors, Actual earnings management, accounting earnings management, audit qu