The study aims to analyze the association between the Effective Tax Rate (ETR), audit quality and magnitude of earnings management pasca IFRS adoption. Audit quality use big four auditor. The modified Jones Model used to measure discretionary accruals (the proxy for earnings management.)
The populations of this research are manufacturing companies listed on Indonesia Stock Exchange (IDX) in period 2010-2013 with total sample of 57 companies. The data are analyzed by using multiple regressions linear.
The results provide evidence that big four auditor negatif significantly influence to the earning management. Nonetheless Effective Tax Rate (ETR) wasn’t significant influence to the earning management pasca IFRS adoption.
Keyword: Effective Tax Rate (ETR), audit quality, big four auditor, discretionary accruals and earnings management.