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Amanda Ayuputri
Felizia Arni Rudiawarni
Muhammad Wisnu Girindratama


The purpose of this study is to examine the effect of audit quality proxied by the size of the auditor, auditor industry specialization and audit tenure on earnings management. Earnings management is proxied by discretionary accruals. This study uses three control variables, which are firm size, operating cash flow ratio, and leverage. This study uses secondary data derived from the financial statements of listed companies on the Indonesia Stock Exchange from 2017-2019. Based on the purposive sampling method we obtain 366 observations, and the technique for examining the hypothesis is multiple regression analysis. The results show that audit quality has no significant effect on earnings management. However, this study finds that Big 4 audit quality and auditors of industry specialization moderated the relationship between cash flow from operations and earnings management, while leverage moderates the relationship between Big 4 audit quality and earnings management.



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Author Biography

Felizia Arni Rudiawarni, Universitas Surabaya

Felizia Arni Rudiawarni is an Assistant Professor at the Faculty of Business and Economics, University of Surabaya. She also holds Certified Financial Planner and Certified Data Analytics. She is interested in financial accounting, especially in earnings management. She also published articles in several international journals.


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