SUMMARY
Earnings management is one of important aspects of quality of financial reporting and main issue among all stakeholders of a company. The rate of earnings is one of important criteria to assess performance. Continuing audit period by auditor firm is one of indicators that will restrict earnings management. There are two important theories on tenure period by auditor firm. The first theory states that tenure period of auditor firm leads to reduce independence of auditor over time. On the other hand, opponents of reducing auditor independence by auditor tenure for long term argue that auditors can acquire better knowledge and experience about their customers. As a result, this experience can improve quality of auditing. The present study has dealt with the relationship between manipulating real items and decisions of employers to change auditors in companies listed on Tehran Stock Exchange during 2008 to 2013. Data from 78 companies were used to test hypotheses of the study. Due to bivalence of dependent variable, logistic regression was used to test the research hypotheses. The results of the research hypotheses suggest a significant positive correlation between the three types of real earnings management, namely cash flow from abnormal operations, abnormal production costs and abnormal optional costs with change of auditors. In other words, when independent auditor is replaced in companies, all three types of earnings management will be increased through real items.