The Impact of A Large CPA-Firm Split on Earnings Management.

• Main Authors: PEI-YING YEN, 嚴珮瑛
• Other Authors: 陳皆碩
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/76453237097125957452

碩士 === 國立彰化師範大學 === 會計學系 === 103 === This paper uses discretionary accruals as a measure of audit quality to discuss after a part of accountants moved from Ernst &; Young in 2008 to DIWAN which was founded in 2009 that became a Big Four and a non-Big Four CPA Firms in Taiwan, how CPAs affect enterprise’s earnings management. The empirical results indicate that after CPAs away from Ernst &; Young, DIWAN decreases enterprise’s earnings management obviously. That is DIWAN suppresses the enterprise in executing earnings management which means the audit quality increasing. Based on accounting conservatism, Ernst &; Young also affects enterprise’s earnings management obviously, which allows enterprise downward earnings management. By comparison of the two firms, the CPAs of DIWAN do have restrictions on client earnings management than the other.