TY  - JOUR
T1  - The Impact of Audit Quality on Pricing of Earnings Components
AU - Keymanesh, Mohsen AU - Sharifabadi, Abbas Alimoradi 
JO  - International Business Management
VL  - 10
IS  - 25
SP  - 5802
EP  - 5808
PY  - 2016
DA  - 2001/08/19
SN  - 1993-5250
DO  - ibm.2016.5802.5808
UR  - https://makhillpublications.co/view-article.php?doi=ibm.2016.5802.5808
KW  - Earnings management
KW  -pricing of accruals
KW  -discretionary component
KW  -audit quality
KW  -changes in discount rate
AB  - Accounting earnings and its components is considered such information that can be used by
decision makers. The reliability of financial statements including profit, greatly depends on the quality of audit
performed. Audit could play a prominent role in reducing disturbance in discretionary accruals by preventing
opportunistic manipulation of accruals. So audit quality somewhat affect pricing of discretionary accruals.
Accordingly the usefulness of discretionary accruals information will increase and as a result, the market
positively prices earnings and its components. The results of investigating 80 companies among companies
listed on Tehran Stock Exchange during the years 2008-2013 show that audit quality does not affect pricing of
cash component of earnings and non-discretionary accruals but has significant and positive effect on the
pricing of discretionary component of accruals. Based on these results it can be argued that the quality of the
audit affects the earnings pricing solely via affecting the pricing of discretionary accruals.
ER  -