Iranian Journal of Accounting, Auditing and Finance
Volume:3 Issue: 2, Spring 2019

The purpose is investigating the manipulation effect and relationship and earning smoothing in companies with independent auditors’ report, investigating the impact and relationship of corporate governance components with corporates independent auditor’s report, and also examining the simultaneous impact of these two variables, auditor’s characteristics and financial traits of addressing corporates and auditor’s problems on auditor’s report. The spatial scope of the research includes corporates listed on the Tehran Stock Exchange. The spatial realm of research includes the period between 2012 and 2018. The examination consists of two independent variables (audit report), the dependent variable (earnings quality), and moderating variables (corporate governance). The results show that the type of audit report affects earnings quality. Corporate governance quality does not modify the interaction between audit statement type and earnings quality. The type of audit statement is different in firms with strong and weak corporate governance. It also shows that it is endorsed in firms with strong corporate governance and not in firms with weak ones.

This study aims to investigate the relationship between accruals and investors' perceptual management. The study's statistical population includes all firms listed on the Tehran Stock Exchange from 2011 to 2017. After reviewing the firms and systematically deleting them, 95 firms were selected for the study. The Findings show a positive and significant relationship between accruals and investors' perceptions (earnings forecasting error). This study attempts to state that if managers face limitations in the management of accruals, they report aggressive forecast earnings as a complementary approach to investor perception management and accounting earnings containing information content. Business management can manage investors' beliefs by managing accruals.

In the present study, we examined the impact of firms' intellectual capital components on the quality of internal control and financial restatements in Iran. Data obtained from the audit reports and financial statements of 116 companies listed on the Tehran Stock Exchange over the period 2012 to 2016. The hypotheses testing results showed that none of the human, structural, and communicational capital coefficients have a significant relationship with the quality of internal control and financial restatements. Our findings could indicate that firms consider little value to human resources and its management during the examination period. Our study results do not deny the importance of human resources in implementing the internal control process. The study outcomes may benefit the impact of intellectual capital on internal control and restatement in developing countries.

The purpose of this study was to investigate the relationship between audit committee attributes and readability of financial statement footnotes of companies listed in the Iranian Stock Exchange.

The statistical population of this study included all companies listed in Tehran Stock Exchange over a period of 7 years from 2012 to 2018. A systematic elimination method has been used for sampling. Multivariate regression and EViews software were used to test the research models.

The results showed a significant relationship between the independence of the audit committee and the readability of financial statement footnotes. There was also a significant relationship between the number of audit committee meetings and the readability of financial statement footnotes. However, there was no significant relationship between the financial expertise of the audit committee and the readability of financial statement footnotes. Value: Companies with less readable financial statements are more likely to commit fraud than other companies. The readability of financial reporting plays an important role in enhancing the predictability of fraud in the financial statement. By using sophisticated and lengthy disclosures, managers keep some of their intended information secrets from investors and other stakeholders to avoid disclosing information about their bad news or performance. The results of this study can be applicable for shareholders and investors; securities exchange; universities and research institutes; suppliers of goods and services, and the government. There have also been made very limited efforts, especially in Iran, to investigate the relationship between audit committee attributes and readability of financial statement footnotes, so we address this topic in the present study.

The present study evaluates whether there is a significant relationship between investment, earnings management, ownership structure, and internal control weaknesses. For the study purpose, panel data, including the financial variables of sample companies listed on the Tehran Stock Exchange, were evaluated during 2012-2018. To test the hypothesis, we analyzed the effect of seven descriptive variables on the dependent variable of internal control weakness; three models of Logit Pooled, LPM Pooled, and Probit Pooled are used for hypothesis testing. The results showed a negative and significant relationship between board compensation, real earnings management, accrual earnings management, capital structure, family ownership, and internal control weakness. Moreover, a positive and meaningful relationship was discovered between institutional ownership and internal control weaknesses. The current study's outcomes significantly show the relationship between internal control weaknesses, investment, earnings management, and firm ownership in a developing country.

The main objective of the present study is to assess the impact of audit report lag, institutional ownership, and board characteristics on the financial performance of listed firms on the Tehran Stock Exchange. 126 firms were assessed for this study during 2013-2017. To assess the firm performance, two criteria of ROE and ROA were used, and Audit Report Lag is measured via the number of days between the end of the fiscal year of the firm and the date of the audit report. Results show that audit report lag has a negative and significant relationship with ROA and ROE and a decrease in the number of days spent by independent auditors for signing annual reports would probably lead to the enhancement of firm performance. Moreover, board independence and board size have a negative impact on firm performance, while institutional ownership has a positive effect on firm performance and gender diversity of board members has no effect on firm performance. Reporting lag is more related to patterns and dominant norms in the industry than analyzed features of the firms. Besides, Governance characteristics are of great importance for creating the basis of economic sustainability in developing countries. In the emergent markets and developing countries, like Iran with a specific ownership structure, governmental policies, culture, and more importantly corporate governance system and which is faced with economic sanctions and its dominant norms can be different from that of the other countries, the impact of Audit Report Lag and Governance characteristics may be different on financial performance. Also, due to the global nature of the economy and the possibility of investing in each global capital market, performing this research and its results are necessary for facilitating the process of decision-making during investing in Iranian firm stocks which are a reason for conducting this paper.

In this research, we examined the structural and environmental challenges and bottlenecks of financial supervision of the accountants of the executive organs of the country on the proper implementation of the public sector accounting system. So, we can provide suggestions to improve supervision to achieve the goals of the public sector accounting system by identifying current obstacles and challenges. Research

The present research is applied in terms of purpose and descriptive and survey research to measure variables and data collection. In this research, we have used a combined approach of library or documentary methods as well as interviews, questionnaires, and data mining methods.

we extracted statistical results regarding the components and barriers related to structural and environmental indicators in the form of 23 questions and a Likert scale questionnaire. Then we analyzed the data using SPSS and AMOS software. The results show the significant impact of structural and environmental barriers and challenges of accountants’ financial supervision on the proper implementation of the public sector accounting system. Using structural equation modeling, we investigated the relationship and correlation between the two structural and environmental components. The results indicate a significant relationship and a positive correlation between these two challenges.

The research results show that the structural and environmental barriers and challenges of accountants' financial supervision significantly affect the proper implementation of the public sector accounting system.