“…But they also worry about the manipulation of financial statements that often occurs, because the entity manager has more knowledge and information than the owner so there is an incentive to behave opportunistically by intervening financial statements to achieve desired targets (Spohr, 2005;Healy & Wahlen, 1998;Weil, 2009). Earnings management behavior is contrary to the concept of faithful representation, one of the fundamental qualitative characteristics in financial reporting (Lerach, 2004;Luippold, 2009;Shuli, 2011;IASB, 2010). The consequences of earnings management are very detrimental, especially to the reliability, business reputation, the accounting profession, auditors, which ultimately lose investor and capital market confidence (Gerald, 2008;McEnroe, 2007).…”