Due to the importance of net profit figure, a lot of research has been done on earnings and related issues. Profit is an important criterion for investors in business units that in this regard can be manipulated by business unit managers. Conservatism is also a tool of corporate governance for shareholders that reduces and limits earnings management. On the other hand, the auditor can reduce the conflict of interest between managers and shareholders. In this way, regular and continuous auditing of companies reduces the possibility of manipulating financial information. The purpose of this study is to investigate the relationship between real earning management and unconditional accounting conservatism. For earning management, an abnormal cash flow measure is used, which is based on the Roychowdhury (2006) model. The statistical population of the research includes companies listed on the Tehran Stock Exchange during the years 1397-1390, which according to the set limitations of the research sample includes1018 years-companies. Findings show that there is a positive and significant relationship between unconditional conservatism of accounting and real earning management from cash flows and audi risk has a negative effect on the relationship of earnings management and unconditional conservatism.
Keywords: Real Earning Management, Abnormal Cash Flow, Unconditional Conservatism