The results of this study indicate that firms in financial crisis conduct earnings decreasing management before their financial crises, regardless of changes in auditor or of the qualified opinions of auditors. However, the aforementioned phenomena are observed to be more serious in firms that were affected by top management turnover. From the policy perspective, the results of this study support the ruling of the Financial Supervisory Com mission imposing stronger accountability on auditors and establishing a regulatory system for top management turnover。