Caramanis, Constantinos; Lennox, Clive - In: Journal of Accounting and Economics 45 (2008) 1, pp. 116-138
We test the effect of audit effort on earnings management using a unique database of hours worked by auditors on 9,738 audits in Greece between 1994 and 2002. When audit hours are lower, (1) abnormal accruals are more often positive than negative, (2) positive abnormal accruals are larger, and...