M.A. Thesis:

Earnings manipulation and Change of Auditor

The main purpose of this study was investigation of the relationship between earnings manipulation and auditor change based on data from companies operating in the capital market. In this study, real earnings manipulation was considered in terms of manipulation of cash flows, public, administrative and selling expenditure, inventory, and production costs. Using ex post facto (based on the past and historical information) and descriptive-correlational approach in this applied research, evidences required from information in reporting (financial statements, auditor's report, capital market information) of companies listed in the Tehran Stock Exchange between the period of 2009 to 2015 (seven years old) were collected. Information obtained from 183 selected sample companies were gathered by systematic deletion sampling method and analyzed by statistical software STATA. Results of testing hypotheses using multivariate regressions with panel data approach at error level five percent showed that there is a significant relationship between earnings manipulation through the manipulation of the cash flows and change of auditor. There is a significant relationship between earnings manipulation through the manipulation of public, administrative and selling expenditure with change of auditor. There is a significant relationship between earnings manipulation through the manipulation of inventory and change of auditor. There is a significant relationship between earnings manipulation through the manipulation of production costs and change of auditor.

Keywords: Earnings manipulation، Cash flows – Public, administrative and selling expenditure، Inventory.