Joint Audit and Earnings Management: A Study ...

Joint Audit and Earnings Management: A Study of Selected Indian Companies

Author Name : Leesa Mohanty

ABSTRACT

An unqualified audit opinion assures stakeholders using financial information, while a qualified audit opinion may contain adverse information, destroying stakeholders'confidence.This study examines joint audit impact on audit quality, ensuring firm financial statements reflect fairness and assurance for stakeholders.The purpose of this research is to examine the link between joint audits and earnings management in the Indian environment. This study's sample consists of firms listed on the National Stock Exchange between 2013-2022. This study employs a unique technique to examine financial businesses' profit management. According to the findings of this study, joint auditing has no substantial influence on earnings management. However, it influencesthe earnings management of only financial firms. This study finds auditor tenure and institutional holdings have no impact on earnings management.This study contributes to the field of audit and earnings management studies and is the first attempt to investigate earnings management in financial institutions.

Keywords: Joint audit, earnings management, discretionary accrual, big four auditor