This study investigates the relationship between audit quality, audit fees, and earnings management in the UK audit market. Using an explanatory quantitative research design and panel data derived from publicly available financial disclosures of UK-listed non-financial firms, the study examines both accrual-based and real earnings management. Econometric panel regression models incorporating interaction and non-linear specifications are employed to analyse the individual and joint effects of audit quality and audit fees. The empirical findings indicate that audit quality and audit fees are both significantly associated with earnings management, though not in a strictly constraining manner. Higher audit quality is observed to coexist with earnings management practices driven by regulatory compliance and strategic considerations rather than purely opportunistic motives. Moreover, audit fees do not merely reinforce audit quality; under certain conditions, they moderate managerial reporting behaviour. These results suggest that audit quality and audit fees function as interrelated governance mechanisms rather than independent controls. The study contributes to the auditing literature by clarifying the complementary and substitutive roles of audit quality and audit fees in constraining earnings management. The findings carry important implications for auditor independence, audit pricing, and regulatory policy in the UK audit environment.
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