The Financial Accounting and Auditing Researches
Year:2019 | Volume:11 | Issue:41 |Papers Count:10

Management conferment of companies to managers and separation of possession from management lead to “ agency problem” incurred by the difference in the function appropriateness of stakeholders. Audit is one of the tools of corporate governance to reduce interest discrepancies. Resolving the agency problem propels the shareholders to think that the managers are working suitably and that their wealth will be maximized. The aim of this article is Investigation of the effect of the Managing Director tenure on auditor tenure in Tehran Stock for that purpose, 97 companies have been examined. According to the theoretical background and review of the related literature to analyze the data, a Multiple Regression model based on the mixed data was used. The results obtained from the null hypotheses indicated that Managing Director tenure has a statistically significant and positive relationship with auditor tenure.

Based on life cycle theory, firms have various characteristics in various stages of their life cycle that affect on the business risk and their performance. Since, the business risk is the basis for determining audit fees. Therefore, The purpose of this study is to investigating audit fees according to the firm life cycle in companies listed on the Tehran Stock Exchange. To separate firm life cycle of cash flows pattern Dickinson (2011) were used. For this purpose two hypotheses are developed and data from 81 companies in Tehran Stock Exchange are analyzed. This regression model using panel data with fixed effects approach, reviews and tests. The results indicated that entrance to the growth stage a significant negative impact on the audit fees. In other words. companies in growth stage pay lower audit fees. Also, the results show entrance to mature stage a significant positive impact on the audit fees. In other words, companies in mature stage pay higher audit fees.

Investors have recognized the importance of corporate transparency more, after stock index crash and the opportunistic behavior of some managers as one of implications of agency theory. Regarding the reliability of financial statements distortion, assurance services by external auditors could be effective through information asymmetry reduction. Current paper has studied the relationship between two factors of audit quality, consisting of auditor tenure and the audit quality rank of audit companies, with a transparency proxy including various dimensions. Four variables including size, stock return volatility, debt ratio and growth have been considered as control variables. The sample of paper is 74 companies which have been listed in Tehran stock exchange. Results show a positive significant relationship between audit tenure and corporate transparency, but there is no significant relationship between the rank of audit quality and corporate transparency unlike our expectations.

In this study, the relationship of Returns with Earning and cash flows before and after Restatement of financial statements has been examined. In this regard, stock Returns index as dependent variable and dividend index, Earning, operational cash flows, free cash flows and accruals as independent variables have been used. The required data were collected from financial statements of 105 companies listed on Tehran Stock Exchange (TSE). It was found that the relationship between Returns and Earning is strong and solid before Restatement; however, we may find it weakened and subsequently reduced information explanatory power. The same performance was observed for cash flows; the only difference is that their changes are less than Earning. Therefore, it can be concluded that though cash flows variable has an inverse relationship with stock Returns after Restatement of financial statements, the Earning is replaced by it.

The aim of this study is to investigate the effect of CEO Overconfidence on future Stock Price Crashes of listed Companies in Tehran Stock Exchange. These five dimensions of CEO Overconfidence our tests: excess investment, Total cash flow, The debt-to-equity ratio, dividend yield is zero and the ratio of capital expenditure. For this purpose comprehensive hypothesis and five secondary hypothesis are developed and data on the 99 companies in Tehran Stock Exchange were analyzed. This regression model using panel data with fixed effects approach, reviews and tests. The results showed that the concentration of excess investment, Total cash flow, The debt-to-equity ratio, dividend yield is zero and the ratio of capital expenditure has significant positive impact future on Stock Price Crashes. Also, the results showed that the Comprehensive measure CEO Overconfidence has significant positive impact future on Stock Price Crashes.

In the analysis of budget issues, because managers in different parts of the company are closer to operate and better information, they can impact to measure their own performance in many ways. The aim of this study is to determine in what circumstances managers of the business units use their moral judgments to assess the budget slack, positively or negatively. In this study, the impact of the three measures of moral equity, contractualism and relativism as moral judgment variables, in the relationship between budget participation and budget slack using regression and correlation, were tested. Based on the findings, except relativism variable, other variables of moral judgment, moderating the relationship between budget participation and budget slack to the negative effects and adjustments are important. When the interactions between the variables inter in the model, ranging from the absurd relativism out and the important effect is significant. Overall, multi-dimensional criteria of this research can be a useful tool for knowledge managers that tend to make moral judgments wrong to cause problems.

The selection of appropriate risk measurement indicators has always been a challenging topic in the field of capital market studies. The ability of financial statements to evaluate risk is one of the key issues for financial researchers. Earning volatility can play a key role in risk assessment In this regard this paper investigates examines the effects of accounting-based earnings characteristics on Earning Downside Risk. In this research, we examined 119 selected companies from listed firms in Tehran Stock Exchange. Characteristics of Accruals Quality, Persist, Predict and smoothing as accounting-based characteristics earning attributes and earning downside risk have been used with a different approach than other research as an indicator of risk assessment. Based on our sample and using multiple regression tests, other than smooth attribute, we found significant relationship other earning attributes and earning downside risk.

Review of literature shows that product market competition can have nonlinear effect on corporate behaviors as management and innovation activities. This study attempts to use financial statement information of the companies listed in TSE. The review of literature is extended by evaluation of a non-linear relationship between competition of product market by Herfindahl-Hirschman index and earnings quality by earnings restatement measure. According to the hypothesis of study, the results of study after control of other relevant factors of restatements by quadratic non-linear regression shows a U-shape relationship between product market competition and restatements. In other words, earnings quality is increased at low level of competition and is reduced in case of high competition.

The auditing process is affected by the auditor's individual characteristics, so it is expected the auditors to be experienced cognitive biases in his decision making and judgment process. Auditors assessment of the going-concern may be subject to self-fulfilling prophecy effect. In other words, auditor may be afraid that he will lose his client. The moral seduction theory states that this behavior is unconscious. Experience in gathering information, judging and selecting the type of report affects. Therefore, the purpose of this study is to investigate the impact of experience on auditors' unconscious behaviors. For this purpose, the required data was collected through a questionnaire distributed among auditors. Through analysis of the path, the structural equations of the data analysis operation were performed. The findings show that experience in auditors with high-level of experience has been able to modify the effect of self-fulfilling prophecy. Therefore, it is better to educate the less experienced auditors to understand the nature of their unconscious bias effects on their decisions.

The purpose of this paper is investigating the feasibility of establishing riskbased Internal audit in Islamic Azad University. The risk-based internal audit, is a solution for ensuring about control of risks, and includes this possibility that all risks are not managed properly can be detected and otherwise be reassured, as well as this approach provides a way to ensure that risks are managed and controlled in the organization The population of this research includes accounting and financial staff in all of the units of Islamic Azad University that selected using proper sampling test. The research method is also a descriptive method. For testing hypotheses and model estimation we used Confirmatory Factor Analysis method. Results show that there are 3 main factors (human, structural and technical factors) in related to implementation of risk-based internal audit in IAU. objectives and organizational processes, training to enhance technical capacity, acceptance and supporting by senior managers, the ability to analyzing and prioritizing risks, determining weaknesses of control and control activities, risk-based internal audit plan, investigating and providing a risk-based internal audit report are important variables of these 3 factors.