Small Audit Firms and Earnings Management

This paper examines the monitoring role of small audit firms on earnings management. Specifically, examine the relationship between earnings manipulations and the use of small audit firms.This paper ,By investigating a specific group of audit firms that are the smallest in the audit market, to analaysis whether there is a meaningful relationship between small audit firm and earning management or not? For answering to this question, we alkalize one hundered and five accepted company in Tehran stock for period of 2009 to 2013 in this research earning management variable with use of adjusted Jones model and small audit firms with categorizing at stock companies, our finding comes from testing hypothesis, conform relationship between small audit firms and earning management.