Earnings management is considered as one of the important dimensions of financial reporting quality and main issue among all shareholders of the company. The level of earnings is considered as one of the important criteria in evaluating the performance. One of the indicators limiting the earnings management is extending the audit tenure by the audit firm. There are two important theories on audit firm tenure. First, audit tenure of audit firm reduces the independence of the auditor over time. However, opponents of reduced audit independence as a result of increased audit tenure argue that auditors are capable to obtain better knowledge and experience on their customers, which this experience might enhance the quality of audit. The present study examines the relationship between manipulation of real items and the clients’ decisions with regard to changing of auditors in the listed companies in the Tehran Stock Exchange during 2010-2015. Information of 78 companies was used to test the research hypotheses. Given the double value of the dependent variable, logistic regression was used to test the hypotheses of study. Findings of testing the hypotheses revealed a positive and significant relationship between all three types of real earnings management, including abnormal operational cash flow, abnormal production costs, and abnormal discretionary expenditures and change of auditors. In other words, all three types of earnings management are increased through real items in the companies where an independent auditor is replaced.
