A Study On The Impact Of Audit Quality On Real Earnings Management

China’s listed companies earnings management is widespread, business managers for their own interests, hidden fool real earnings performance, on the one hand misled stakeholders and potential investors of the decision-making, on the other hand leads to the weakening of the capital market is reasonable to optimize the allocation of resources.So earnings management has been one of the hot topics practitioners and theorists discussed.Earnings management can be divided into accruals and operating profit by manipulating the real trading activity in two ways, a few years ago the company representative will be more inclined to accruals earnings management, but in recent years, many companies substantive the degree of earnings management is increasing.Because the actual earnings management activities are not likely to cause the auditor’s attention, so a high quality audit or not to the extent of earnings management played a crucial level.Independent audit can improve the authenticity of corporate financial information, reduce agency costs, higher quality audit, audit effectiveness can be higher.Previous studies focus more on earnings management accruals, and face the real concern was not enough earnings management, earnings management has long been true in virtually every business, with real earnings management more widely led directly to the shareholders of potential long-term cost of the enterprise’s future cash flows will be adversely affected, and may cause harm to the future value of the business.Once the excessive activity of some real use to manipulate earnings after being uncovered may lead to serious crisis of confidence. Because the real cause less earnings management to review the possibility of regulatory authorities and auditors, managers believe the real surplus in financial reporting activities as long to get good disclosure, it will not affect the audit opinion and the principal regulatory situation.By selecting office system, Audit fee, the Audit opinion three proxy variables to measure the impact on audit quality real earnings management, empirical research and normative research combines scientific method corresponding conclusions, proposed a series of audit effective quality improvement methods and suggestions in order to provide high-quality external audit and analyze data to support real business impact of earnings management.