FINANCIAL ACCOUNTING RESEARCH
Year:2022 | Volume:14 | Issue:2 (52)|Papers Count:6

Some characteristics of client management can shape auditors' mentality, attitudes, and behaviors through various mechanisms, and even challenge their judgment as one of the basic pillars of an independent audit. Therefore, one of the main objectives of the present study is to investigate the effect of charismatic client management among the threats to auditor impartiality on auditor judgment and decision-making process. The other objective is to reflect on auditor's rank and organizational identity, as the factors neutralizing these threats, on auditor judgment. The trusted auditors of the Tehran Stock Exchange, including those involved in private institutions and Iran Auditing Organization, constitute the statistical population in this study, in which the data in 2020-2021 were collected using a questionnaire. The target sample consists of 170 independent auditors, and the research hypotheses were tested via the Smart PLS software. The study findings at 95% confidence interval demonstrated that charismatic client management has a significant positive effect on client identification and auditor advocacy attitude. Moreover, client identification and auditor advocacy attitude have a significant negative impact on auditor objectivity. On the other hand, auditor's rank and organizational identity improve objective judgments. Accordingly, auditors can be affected by client management even though they are not a member of their institution, but client influence is less in higher-level responsibilities of the audit firm. Thus, the results of this study can be exploited by standard developers, the Iranian Association of Certified Public Accountants, as well as independent auditors and researchers.

Considering the important role of the exchange industry in the optimal allocation of resources and economic growth, as well as promoting a culture of attention to sustainability issues, the purpose of this study is to provide a comprehensive framework of material sustainability criteria in the exchange industry for integration into strategies, performance measurement, evaluation and reporting. In order to identify material sustainability criteria in the Iranian exchange industry, the findings of Ahmadi et al research (1401) which include 33 criteria and 352 sub-criteria have been used as a basis. In order to formulate a local framework, the participation of 21 industry experts was used to modify the criteria identified in the Ahmadi et al, according to the culture of Iran. Finally, after finalizing sustainability framework of the Iranian exchange industry, in order to evaluate materiality and prioritize the main criteria, the Fuzzy AHP method has been used. Considering the extensive effects of exchanges from the perspective of financing economic enterprises and the government (through transaction fee tax and issuing bonds), the findings of this study indicate the priority of economic dimension over other sustainability dimensions. Macroeconomics, government and other regulators and trust and confidence have the greatest relative importance among all other criteria. On the other hand, due to the low emissions of exchanges, the relative importance of environment dimension criteria is less than other dimensions in the industry.

Intellectual capital as an intangible asset and also due to the possibility of continuous learning can be a stimulus for creating a competitive advantage for companies and as a result, more stability and a forward-looking view in earning profits, and paying attention to it may result in reducing the value gap and increasing the reliability of financial statements items. This study aims to investigate the effect of intellectual capital on sustainability performance reporting and business strategy of companies listed on the Tehran Stock Exchange. For this purpose, the data of 126 companies listed on the Tehran Stock Exchange in the period of 2013-2021 were collected and analyzed using multiple regression models. The results showed that the intellectual capital coefficient and its elements have a positive effect on companies’,sustainable performance reporting and also the intellectual capital coefficient and the efficiency of structural and physical capital have a positive effect on futuristic strategy while the efficiency of human capital has no effect on business strategy, Which in order to provide more information transparency, it is necessary to increase information and standardization of intellectual capital reporting in financial statements.

Errors are inevitable in accounting and factors such as diversity and complexity of economical subjects, workloads, exhaustion, and similar issues increase their likelihood. As well, the constant change of the economic, social, and other factors makes it vital to consider the change of the accounting principles and methods, in order to enable the adaptation of the enterprises to new conditions, since all these issues can result in the detection of manipulation of earnings in the financial statements. This subject received serious attention after the Enron Corporation scandal incurred. This research aims to prove the need for the application of the enhanced Beneish Model for credited companies listed in the Tehran Stock Exchange between the years 2009 and 2020. Target sample consists of 265 companies, which have been used to estimate and improve the Benish model using logit regression and genetic algorithm. The result shows that, according to the Confusion Matrix, among all models of detection of manipulation of earnings in financial statements, the genetic algorithm Beneish model has maintained 73. 21 accuracies, which is considered the highest rate for predictability compared to the primary Beneish model and models offered with logistic regression, thus the theory of this writing is approved.

The quality of financial reports and reported profits is very important for investors, legislators, researchers, etc. On the other hand, company managers use a variety of profit management methods to increase the stock price and maintain a high stock value. In general, some managers have enough incentives for a high valuation of the company's shares. In this way, one of the methods that can be applied to prevent the decrease in stock prices is the use of discretionary accruals. In this regard, agency costs are considered one of the determining factors of accruals in companies, and the ownership structure affects the levels of agency costs, also. Based on this, in current research, the effect of the ownership structure on the magnitude of discretionary accruals in companies with high valuations has been investigated. For this purpose, the data of 160 companies listed on the Tehran Stock Exchange during the years 2010 to 2019 have been collected. The research results show that there is a direct relationship between the high valuation of the company and the magnitude of discretionary accruals. Also, the results show that the magnitude of discretionary accruals increases in the initial periods of high valuation and decreases in the following periods. In addition, managers of state-owned companies do not have the necessary motivation to use discretionary accruals in line with the company's high valuation. In short, the results of this research help to understand the effect of the ownership structure on the reporting behavior of managers in the Iranian capital market.

Managers can maximize shareholders' wealth by managing variables in the financial structure (such as capital structure, dividend, and investment). Using corporate governance mechanisms, shareholders try to guide managers in this direction. The sample of this research is the statistical tests in past experimental studies that experimentally tested the research hypotheses. In this research, with the meta-analysis approach (in seven stages), the influence of the aforementioned variables on corporate governance and their effect on financial performance is tested. Due to the presence of three intermediate variables, three hypotheses about the effect of corporate governance on the mentioned variables and three hypotheses about the effect of intermediate variables on financial performance, and one hypothesis on the direct effect of corporate governance on financial performance were designed and 64 studies including a total of 260 effect size (r type) that their publication dates were between 1993 and 2019 were meta-analyzed. In the groups of the sample where the effect sizes were divergent, the random effects method, and for the convergent cases, the fixed effects method was used to calculate the cumulative effect size. Based on the results, corporate governance affects financial performance, capital structure, dividends, and investment. In addition, all three variables of capital structure, dividend, and investment have a significant influence on financial performance. For each hypothesis, after determining the size of the joint effect, a robustness test has been performed and analyzed on the results.