Internal Audit Quality and Earnings Management

@article{Prawitt2008InternalAQ,
  title={Internal Audit Quality and Earnings Management},
  author={Douglas F. Prawitt and Jason L. Smith and David A. Wood},
  journal={Financial Accounting eJournal},
  year={2008}
}
Internal auditors often perform work that is relevant to their host entities' financial reporting processes, yet little research attention has focused on the effects of internal auditing on companies' external financial reporting. Using a unique and previously unavailable data set, we investigate the relation between internal audit function (IAF) quality and earnings management. We measure IAF quality using a composite measure comprising six individual components of IAF quality based on SAS No… 
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