The article investigates how audits impact earnings management in small Spanish companies. They explore if audits, both voluntary and mandatory, help improve the accuracy of financial reporting by limiting manipulation of profits. The study looks at differences between voluntary and mandatory audits, considering the influence of Big 4 and Middle-Tier audit firms. The researchers discover that audited firms show fewer unusual accounting entries, indicating less manipulation of earnings. Both types of audits, voluntary and mandatory, limit earnings manipulation, but mandatory audits provide stronger control. Audits mainly prevent companies from overstating their earnings, showing that auditors tend to be cautious in their assessments of financial statements.