This study aims to provide a quantification method to find and quantify the risk that a company may face if it makes income smoothing. It will do this by conducting empirical studies showing the effect on stock price if the company tries to manipulate financial statements and creating some scenarios showing the impact of the bad scenario. The results indicate that earnings management impacts the accounting changes has an effect on the user decision for financial statements and has an impact on the stock price. It will affect the investors who make decisions.