| Abstract: |
The study aimed to test the effect of the quality of external audit on the relationship between discretionary accruals and earnings persistence , after one period and two future periods, Especially in the light of the scarcity of previous studies in the Egyptian environment, to achieve this goal, the financial data was tested for a random sample of non-financial companies listed on the Egyptian stock exchange, which reached (100) companies during the period from (2016-2020) and their registration continues during the year 2021, with a total of (500) observations, after one future period. and the number of observations of the study sample after two future periods reached (400) observations, during the period from (2016-2019) and their registration continues during the years 2020, 2021. the dependent variable of "earnings persistence" was measured by future earnings and a coefficient of β in the simple regression model, the independent variable of "discretionary accruals" was measured by the original (Jones, 1991) model, while the moderating variable of "external audit quality" was measured by the size of the audit firm, the researcher relied on the multiple linear regression model to test the study hypotheses statistically, the result of the study indicated that there is a positive and significant effect of discretionary accruals on earnings persistence (measured by future earnings) after one period, while there is no significant effect for them after two future periods, it also found that there is no significant effect of discretionary accruals on earnings persistence (measured by a coefficient of β) after one period and two future periods, while the results of the study found that there is a positive and significant effect of external audit quality on the relationship between discretionary accruals and earnings persistence (measured by future earnings) after one future period, and there is no significant effect for them after two future periods, the study also found that there is no significant effect of external audit quality on the relationship between discretionary accruals and earnings persistence (measured by a coefficient of β ) after one future period and two future periods.
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