THE IMPACT OF AUDIT FEE AND AUDIT QUALITY TOWARDS EARNINGS’ MANAGEMENT : DATA RETRIEVE FROM S&P CAPITAL IQ

Tanggor Sihombing, Windy Veronica

Abstract


The purpose of this study is to examine the impact of audit fee and audit quality towards earning management. Earning management is measured by discretionary accruals (DA), audit fee will be taken annually from the fee of auditors in each company, and audit quality indicate by big 4 or non-big 4 public accounting firm. The population being used in this study are the countries in ASEAN which are listed in S&P Capital IQ on 2017-2020. Purposive sampling in this study using a total of 80 companies in consumer discretionary and consumer staples who publicized their annual report annually and disclose their external auditors. Data in this study are tested with the approach of multiple regression using SPSS IBM 25. Study in this study show the following result: the impact of audit fee and audit quality towards earning management are insignificant. However, as a control variable, return on asset (ROA) and leverage are significant, but firm size is insignificant.


Keywords


earning management, audit fee, audit quality

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