• Marcia Martins Mendes De Luca Universidade Federal do Ceará
  • Alan Diógenes Góis
  • Gerlando Augusto Sampaio Franco Lima University of Illinois at Urbana-Champaign
  • Jislene Trindade Medeiros Universidade Federal do Ceará



Audit quality, Accounting values, Earnings management, Discretionary accruals


Considering that national culture affects the country institutions and, indirectly, transaction costs, accounting records and audit quality, the purpose of this study was to evaluate the moderate effect of accounting value on the relationship between audit quality and earnings management in a sample of 45,216 firms (374,690 observations) from 83 countries, covering the period 2002-2017. Audit quality (auditor reputation and auditor industry specialization) was measured as proposed by Francis and Wang (2008), accounting values (professionalism vs. statutory control, uniformity vs. flexibility, conservatism vs. optimism, and secrecy vs. transparency) were categorized as in Braun and Rodriguez Jr. (2008) and earnings management was quantified with the modified model of Jones (Dechow, Sloan, and Sweeney, 1995). Auditing by highly reputed audit firms (Big 4) was found to inhibit earnings management. Moreover, the interaction between audit quality and accounting values suggests that the positive effect of audit quality on earnings quality is stronger the higher the country level of professionalism, flexibility, optimism and transparency. Our results confirm that institutional factors, represented in this study by accounting values, are indeed relevant to earnings and audit quality.

Biografia do Autor

Marcia Martins Mendes De Luca, Universidade Federal do Ceará

Doutora em Controladoria e Contabilidade pela Universidade de São Paulo. Universidade Federal do Ceará – UFC

Alan Diógenes Góis

Doutor em Controladoria e Contabilidade pela Universidade de São Paulo.

Gerlando Augusto Sampaio Franco Lima, University of Illinois at Urbana-Champaign

Doutor em Controladoria e Contabilidade pela Universidade de São Paulo. University of Illinois at Urbana-Champaign – UIUC

Jislene Trindade Medeiros, Universidade Federal do Ceará

Doutoranda em Administração e Controladoria pela Universidade Federal do Ceará. Universidade Federal do Ceará - UFC.


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Como Citar

DE LUCA, M. M. M.; GÓIS, A. D.; LIMA, G. A. S. F.; MEDEIROS, J. T. THE EFFECT OF AUDIT QUALITY AND ACCOUNTING VALUES ON EARNINGS MANAGEMENT. Contabilidade Vista & Revista, [S. l.], v. 33, n. 1, p. 94-114, 2022. DOI: 10.22561/cvr.v33i1.6349. Disponível em: Acesso em: 3 jul. 2022.

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