The Effectiveness Of External Audit Quality On Earnings Management Of The Vietnamese Manufacturing Industry
Abstract
The research paper aims to explore the effectiveness of external audit quality
on earnings management in the context of the Vietnamese manufacturing industry. The
data involves all listed manufacturing firms on HOSE and HNX from 2015 to 2019.
Auditor reputation and tenure are two proxies for assessing the quality of an independent
audit, and discretionary accruals are applied to evaluate a company’s earnings management
level. The finding shows that auditor tenure is negatively significant to earnings
management, while auditor reputation fails to affect earnings management.