EFFECT OF AUDIT QUALITY ON EARNINGS MANAGEMENT OF BANKS IN GHANA

The purpose of the study sought to assess the effect of audit quality on the earnings management of banks in Ghana. The study adopted the positivist philosophy. The quantitative data were gathered from nine (9) banks using their financial statement and reports. The study employed the purposive sampling technique in … See more

The purpose of the study sought to assess the effect of audit quality on the earnings management of banks in Ghana. The study adopted the positivist philosophy. The quantitative data were gathered from nine (9) banks using their financial statement and reports. The study employed the purposive sampling technique in selecting the banks. The ccross sectional design was used. The partial least squares structural equation modeling technique was used to analyse the main objectives of this study using SMART PLS version 3.3. The major findings of the study were: audit tenure had significant positive effect on earnings management of banks; audit size had significant negative effect on earnings management of banks; and audit fee had significant positive effect on earnings management of banks. It is recommended that, auditor must make clear and audit in the banks in order to avoid management misappropriating funds.

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