JOURNAL OF AUDIT SCIENCE
Year:2013 | Volume:13 | Issue:50|Papers Count:6

This paper seeks to examine the impact of Voluntary vs. Forced Financial Restatements on Earning Quality of restating firms. The sample in Our Study includes 62 companies that provided only once in the period 1380 to 1390 have been restated. Our proxy for earning quality is change in Accrual Quality focus on Dechow and Dichev (2002) model. In this study, the internal corporate governance variables (board characteristics) and audit quality and firm characteristics as control variables have been used. We have investigated how these variables for the period of misstatement and post-restatement have affected the quality of earnings. Our findings show that the Forced financial restatements (due to the proposal of external auditor) is significantly positively related to the increase in accrual quality. Moreover, the study finds that the changes of accrual quality in firms with Forced Financial Restatements are significantly higher due to internal corporate governance change.

The purpose of this study is investigating the effect earning quality on stockholders cost in listed Companies in TSE under comparative approach according to high earning and low earning quality of corporations. For accept the research purpose treepotheses was implicated we examined 50 firms of accepted in Tehran stock Exchange in 1381-1388 period. For investigating relation between research variables we used regression analysis, also, we test effect of earning quality with stockholders cost with dummy variable. As the result we can accepted with increasing of earning quality of listed Companies in TSE, stockholders cost will decreases. This result shows earning quality have significant in decreasing and increasing of corporations stockholders cost.

This study investigates the effect of political connections on accrual quality n the firms listed in Securities and Exchange organization of Tehran. It also examines the relation between key accounting variables of politically connected firms and accrual quality. The methodology of research is correlation based on multiple regression. The results of the research for the 5-year data during the period of 1384-1388 show that political connection in sample companies lead to decrease in the accrual quality, and also the results of testing the hypothesese reveal that the accrual quality proxy has positive correlation with audit size, profitability index and financial leverage. In contrast it has poor correlation with the size of the politically connected firms which is not significant statistically.Also the findings of the study have not shown any significant evidences presenting the existence of significant relation among the other variables such as auditor switching, management switching, and sale growth with accrual quality.

The aim of this research is to investigate the effect of audit quality measures on investment risk in companies listed in Tehran Stock Exchange. Audit quality measures in this study are audit firm size, audit specialist and audit tenure. For this purpose three hypotheses were developed and data of 120 companies in Tehran Stock Exchange for the period between the years 1383 to 1389 were used. To test the hypotheses, multiple regression techniques and panel data methods were used. The results showed that audit firm size and audit tenure are significantly positive and audit specialist significantly negative impact on investment risk in companies listed in Tehran Stock Exchange.

Purpose: the purpose of this paper is to overview the accrual’s capacity in predictability of cash flows and the impact of bankruptcy risk on the capacity. Because the economic decisions require the assessment of company power in creating cash flows. Furthermore, some researches guest the probability of being influenced the relationship by bankruptcy risk.Methodology: this article by using of company’s financial information listed in Tehran Stock Exchange; first nationalize the chariot’s bankruptcy risk model. Then with segregation of accruals to discretionary and non discretionary, investigates the relationship between Accruals and future cash flows.Findings: Results show a significant positive association between abnormal accruals and future cash flows but as probability of one-year-ahead bankruptcy risk is increasing, this association is decreasing.Originality/value: although, the prior researches have studied the Accrual’s capacity in predictability of cash flows, but this paper in addition to segregation of accruals to discretionary and non discretionary, with empirically analyzes the influence of bankruptcy risk on the given relationship. So, the evidences of this paper open a new window for the investors.