The Effect of Audit Quality on Management Mechanisms
Roya Darabi, Rezvan kosari mehr, Leila Hassannejad

Abstract
This study aims to investigate the effect of audit quality on management mechanisms. In order to assess management mechanisms (discretionary accruals) Kasznic model was used. This study has applied objectives and it is considered a descriptive-regression research as it investigates the relationship between independent and dependent variable using regression method. Audit quality is a dummy variable, in which the Audit Organization has the value of 1 and other audit institutions have the value of 0. The period under study is four years, (2008-2011). Each year was tested by using cross-sectional regression method and the study’s hypothesis was tested using panel data. The results gained from this study indicated that there is a negative significant relationship between audit quality and management mechanisms. Therefore, it should be said that the better the audit quality, fewer will be the opportunities for management mechanisms.

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