The Effect of Audit Quality Based on Audit Rankings on Accrual and Real of Earnings Management in Initial Public Offering

The purpose of this study is to investigate the activities related to the management of earnings by analyzing the quality of the audit at the time of Initial public offering. In this regard, the relationship between profit management in the Initial public offering of companies audited by first-class audit firms in the ranking of the Iranian public accountant’s community and other companies is compared.The statistical population of this study is the initial supply companies in stock and overseas which have been accepted in the stock exchanges and overseas from 2005 to 2017.Evidence suggests that the shares of companies first disclosed and audited by first-level audit firms have a lower level of Accrual and real of Earnings management.