The Impact of Audit Quality on Reducing Earnings Management Practices in the Jordanian Industrial Companies

This study aimed to identify the effect of audit quality in reducing management's opportunistic behavior. Management’s opportunistic behavior was measured by the level of earnings management. The study relied on secondary data for a sample of (40) companies listed on the Amman Stock Exchange during the period (2019–2022). The study found that higher audit quality is linked to a lower level of earnings management. Specifically, both audit fees and non-audit services had an impact on earnings management. While there was no effect of the size of the audit. The study focuses on the need to pay sufficient attention when selecting auditors and comparing them, and that the choice between auditors should not be based on personal considerations and low fees, but rather that the choice be made by focusing on the auditor’s competence and quality.