Univrsity Of Tehran Press Accounting and Auditing Review 2645-8020 19 4 2013 01 20 The Impact of Abnormal Accruals on Auditor Reporting The Impact of Abnormal Accruals on Auditor Reporting 33 50 73220 10.22059/acctgrev.2020.73220 FA F Heidarpour Assistant Prof. in Accounting, Islamic Azad University, Central Tehran Branch, Tehran, Iran M. Towhidlou M.Sc. In Accounting, Islamic Azad University, Central Tehran Branch, Tehran, Iran Journal Article 2019 10 21 <strong>Abstract:</strong> We exmine the relationship between earnings management, measured by Abnormal accruals and auditor reporting, measured by type of audit firm and audit opinion. Our sample comprises of firm, listed on the Tehran Stock Exchange, for the period 2005-2011. The results provide no evidence for the relationship between type of audit firm and Abnormal accruals. However, there is a significant positive relationship between Abnormal accruals and unqualified audit opinions, and between big audit firms and unqualified audit opinions for our full sample estimation from the control variables, profitability, current ratio and size are positively related to discretionary accruals. Also, profitability is positively related to unqualified audit opinions. But size is negatively related to unqualified audit opinions. We conclude that big audit firms issue unqualified opinions, in spite of the level of earnings management employed. <strong>Abstract:</strong> We exmine the relationship between earnings management, measured by Abnormal accruals and auditor reporting, measured by type of audit firm and audit opinion. Our sample comprises of firm, listed on the Tehran Stock Exchange, for the period 2005-2011. The results provide no evidence for the relationship between type of audit firm and Abnormal accruals. However, there is a significant positive relationship between Abnormal accruals and unqualified audit opinions, and between big audit firms and unqualified audit opinions for our full sample estimation from the control variables, profitability, current ratio and size are positively related to discretionary accruals. Also, profitability is positively related to unqualified audit opinions. But size is negatively related to unqualified audit opinions. We conclude that big audit firms issue unqualified opinions, in spite of the level of earnings management employed. https://acctgrev.ut.ac.ir/article_73220_1d4123f04e2bfb255830c045df0eddf7.pdf