Professional Auditing Research
Year:2021 | Volume:1 | Issue:2|Papers Count:7

The purpose of this study is investigating factors that influencing the internal auditing effectiveness and then evaluating the role of this department in risk management and internal controls of Keshavarzi bank. This research is applied and a descriptive. Required data were collected from 78 bank experts in different organizational categories including internal auditors and inspectors, senior managers and experts in charge of Keshavarzi bank by questionnaire in 2019. The research hypotheses were analyzed by using SPSS software and the statistical method of Smart PLS software with structural equation modeling. The results showed that the factors of internal auditing independence, internal auditor’ s competence, management support of internal audit, internal auditing size and the relationship of internal and independent auditors had a significant positive effect on the effectiveness of internal auditing. Also, the effectiveness of internal auditing improves the bank’ s internal controls but does not have a significant impact on improving bank risk management. Based on the results of this study, it is better to involve internal auditors with risk management in the risk assessment process, setting up an internal auditing program with a risk-based approach to identify the priorities of the internal auditors’ activity, to providing a more effective internal audit in Keshavarzi bank.

This study aimed to investigate the relationship between audit report delay and future stock price crash risk. It also aimed to investigate the effect of internal audit performance on the relationship between audit report delay and future stock price crash risk. In order to measure the Internal Auditor Performance, the number of employees of the internal audit unit and the age of the internal audit unit was used. In this regard, data of 167 companies listed on the Tehran Stock Exchange between 2015 to 2020 were collected from Rahavard Novin, their financial statements, and the official website of the Tehran Stock Exchange and then analyzed using the multivariate regression. The results showed that the audit report delay had a significant positive effect on the future stock price crash risk. A significant negative relationship was also observed between the effect of the size of the internal audit unit and the age of the internal audit unit on the relationship between the audit report delay and the future stock price crash risk. An internal auditor can have a decisive role in adjusting the type, nature, and scheduling of the audit procedures and reducing the limitations of the independent audit procedures, and also improving reporting timeliness and reducing the stock crash risk.

The need to pay attention to ethics in the accounting and auditing profession is vital for society; So that the observance of behavior and ethical standards can be the core of the existence of the profession and if the personality traits related to ethics are not considered, the profession faces ethical failure and, ultimately, significant economic consequences. Accordingly, the purpose of this study is to investigate the effect of personality traits on the ethical decision-making process of professional accountants. In this study, a questionnaire was obtained from 226 senior auditors (internal and independent) and senior financial managers of companies listed on the Tehran Stock Exchange by purposive sampling method and the information was analyzed using cross-sectional regression. Findings showed that the personality traits of economic status, education, ethical idealism have a positive and significant effect on the ethical decision-making process and ethical relativism has a negative and significant effect on the ethical decisionmaking process. Therefore, the first main hypothesis of the study on the effect of personality traits on the ethical decision-making process was confirmed. Behavioral characteristics of “ the result of an immoral decision” and “ social consensus for an immoral decision” also have a significant positive effect on the ethical decision-making process. The second hypothesis was confirmed. Finally, it was found that the demographic characteristics of economic status, education and age have a positive and significant effect on the ethical decision-making process and gender has a negative and significant effect on the ethical decision-making process. The results of this study can help to develop theoretical foundations in the field of ethical behavior in accountants and increase their level of awareness and ethical development.

The expectations at clients’ workplace poses pressure and stress on auditing process. Furthermore, it seems that the mentioned stress affects the audits’ professional independence. The present study purports to investigate the effect of stress on the audits’ professional independence. We used questionnaire to collect our data. The population included the society of certified audits and the employees of the auditing companies in Uromieh city. 175 people were randomly selected. Data description methods were used to describe the data and observations. In order to test the study hypotheses, two methods of factor analysis and structure equations were employed. Our findings show that five important factors of stress have negative effect on the audits’ independence in appearance and independence of mind. The expertise and experience of the audits affects the relationship between the stress and independence of mind, but it does not mediate the stress and independence in appearance.

One of the ways that can be to achieve better utilization of investment opportunities and better allocation of resources is financial distress prediction. Therefore, audit reports and its disclosures play an important role in corporate financial distress and bankruptcy prediction. Assessing the effectiveness of audit report disclosures in identifying bankrupt companies and comparing them with bankruptcy prediction ability can be useful. In this study, the effect of auditor’ s report disclosures on the failure of businesses in the firms accepted in Tehran Stock Exchange (TSE) from year 1393 to 1398 has been investigated. To examine this issue, the effect of auditor’ s report disclosures as the independent variable and failure of business as the dependent variable is considered. Although in this study, the results show that the auditor’ s report disclosures content has a significant impact on business failure. Furthermore, internal and external factors related to audit report disclosure is also, affected on business failure.

Given the usefulness of the quality of financial reporting in making informed decisions by users (stakeholders) about investing in businesses, Audit fees, maintaining auditor independence, and increasing audit quality can reduce unreasonable management reporting decisions regarding profit quality and ultimately increase the quality of the business’ s financial reporting, on the other hand, it can cause economic dependence between the auditor and the client and provide for fundamental doubts about the auditor’ s independence and the decline in audit quality and change in audit fees. This will reduce public confidence (stakeholders) in the quality of financial reporting. Therefore, the purpose of this study is to explain the relationship between audit quality, auditor independence and audit fees with the quality of financial reporting in insurance companies. The method of the present study was correlational in nature and content and hypothesis testing based on multivariate regression was used and in terms of the type of purpose, it has been part of applied research and the research has been done in the framework of inductive reasoning. Its statistical population includes all insurance companies in Iran In order to achieve the research goal, the period between 1392 to 1398, has been selected as a sample. The results of the test of research hypotheses indicate a significant and direct (positive) relationship between audit quality, auditor independence and audit fees with the quality of financial reporting in insurance companies in Iran.

Audit fee pressure theory states that private auditing firms, members of the community of certified accountants, do not spend sufficient time to detect significant misstatements in the financial statements of an accountant due to low fees. This theory predicts that the quality of an organization’ s audit that does not face low audit fees will be higher than that of private members of the CAA. However, the state auditor and auditor theory holds that there is substantial doubt about the auditor’ s independence when the auditor and auditor are both public. This theory calls into question the independence of the audit organization. Therefore, the present study proposes, based on two contradictory theories, the formulation of an unbiased hypothesis regarding the difference in audit quality and The purpose of this study was to examine the role of downward pressure on audit in Financial Reporting Misstatement. The statistical population of this research is all companies Listed in Tehran Stock Exchange from 2012 to 2019. The sample is based on the systematic elimination method of 92 companies. The research method is based on multivariate regression and Data panel. Also, the research data was collected using the Proceedings of the Journal. Evidence of research suggests that with lower pressures on audit fees, the lower quality of audit services will also increase. Another finding of the research is the confirmation of the audit fee theory. Consistent with the audit firm’ s theory of downward pressure on the auditor with deviations in financial reporting, the theory confirms the audit fee pressure with a positive effect of downward pressure on the auditor with deviations in financial reporting.