Do you think that there is an association between earning management and audit quality? Is it positive or negative association? How?

Yes Recent high-profile earnings management cases (e.g., WorldCom) and the collapse of Enron have put the role and quality of external audit in ensuring the quality of corporate earnings under considerable scrutiny. Much research has been conducted on the determinants of earnings management, such as a firm’s financial characteristics and audit quality. Since earnings management is inherently unobservable, most studies used measures of accruals as proxies for earnings management. The purpose of this study is to examine the relationship between audit quality and a more direct measure of earnings management – earnings restatements. Contrary to the concerns of many in accounting practice and research, as well as the results in prior research, this study finds no statistically significant relationship between earnings restatements and non-audit fees. This does not support the claim that non-audit fees paid to the auditor are the primary reason for auditor independence impairment that results in lower audit and earnings quality. On the other hand, this study provides evidence that total fees and audit fees are positively associated with earnings restatements

Sure , it is key of success , very positive 

to build a system , it means we need to build a control system to be built in >

auditting is the main tool to highlight the weak points .

so, it is mandatory to keep audit results in mind while implementing system and be sure all weak points has been covered. properly

 

Obviously,  the quality auditing always help to the management to get the accurate financial statemnt and they can take wise decision to achieve the desired future target

Strongly agreed, the more audit quality the more accurate financial statement, therefore the management decision will be more efficiently and effectively to achieve the future target.

Quilty auditing will help the orgnisation to acheive the objective and strategy by ensuring the governance and the risk associated mitigated in order acheive the targeted goals set by the organisation.

Good audit will make sure total earning are reach in to enterprenaur , strong audit tools helping to make prventive actions fron fraudlent activities.

An audit will highlight those areas which have poor internal contro .  AS A RESULT APPROPRIATE action will  result an adequets interna controll.

An audit will highlight those areas which have poor internal control. As a result appropriate action will result in adequate internal controls. That will result in better financial management which will improve earning or reducing losses.

In facrt Earning management sometimes has bad effects that could be at the oppsite side of an audit targets. Earning managemet could let the management use their felexibilty to chanage or to infairly represent the nature of the finiacial statements, which will be refused by the auditor at the audit process. 

Thank You for the invitation 

Yes, there is especially internal auditing, since auditing is a reassuring service, and internal auditing also has a consultative role.

Sure both Positive and Negative are exist let me explain example, 

       - Audit maintain governance procedures determine risk areas to management, that is a positive association on the other hand Management could try to maximize profit by applying wrong accounting treatment, and audit always ensure that financial information provide by management to financial statement users represent actual position of company, that is positive.