Audit Quality, Firm Value And Earnings Management

This research investigates the mediating relationship of the profit management conceptual framework on audit quality interpreted by elements such as audit firm size, audit firm industry specialization and audit costs on company value. A model approach with quantitative adoption. Data was taken from mining companies on the IDX for the 2021-2023 period, with a sample of 177 research data. The analysis tool uses the Eviews 13 statistics program. The results of the research show that the size of the audit firm has no influence on profit management. The audit firm's industry specialization and audit costs are proven to lower profit management practices. The size of the audit firm and the specialization of the industry have been proven to increase the value of the company, but the cost of the audit has no effect on the value of the company. Profit management practices can lower the value of a company. It is evident that profit management is able to mediate the relationship of the audit firm's industry specialization with the company's value, as well as audit costs. There is no strong evidence that profit management mediates the size of an audit firm with the value of the company.