Criminal activities, such as fraudulent financial reporting and misappropriation of assets; It is a widespread problem that companies around the world face. According to theoretical and empirical research, the most common technique used for fraudulent financial reporting involves the misuse of assets for personal gain, but on the contrary; Fraudulent financial reporting (although it often does not occur) will do the most damage. The main responsibility for preventing and detecting fraud lies with management. However, in addition to management, the board of directors, audit committees, INTERNAL auditors and independent auditors all have an important role and responsibility in the ability to rely on reliable financial statements. One of the important tasks of INTERNAL auditing is to provide effective assurance services and impartial review of evidence to independently evaluate the processes of corporate governance, INTERNAL CONTROLS and risk-based detection management to prevent fraud with the aim of minimizing it.

The purpose of this study was to investigate the relationship between weaknesses in INTERNAL CONTROLS and the risk of fraud in financial reporting. There are two perspectives on the effectiveness of INTERNAL CONTROLS as an important part of the governance system for non-fraudulent conduct. According to the first view, the strengthening of INTERNAL CONTROLS reduces the occurrence of fraud, and according to the second view, because of the ability of managers to override INTERNAL CONTROLS, INTERNAL CONTROLS do not have the necessary effectiveness in terms of fraud. In order to achieve the research purpose, using sample data from 152 companies listed in Tehran Stock Exchange during the period 2012 to 2017 and Logit regression approach to test the research hypotheses were studied. Benish's (1999) model was used to measure the risk of fraud in financial reporting. The findings suggest that, despite weaknesses in INTERNAL control and weaknesses in INTERNAL control, the risk of fraud in financial reporting increases. These findings are in line with the first view.

The aim of this study is to examine the association between managerial overconfidence and the existence of important weak points in INTERNAL CONTROLS in financial reporting of the firms listed in the Tehran Stock Exchange, TSE. In other studies, there are evidences on the effects of managerial overconfidence on firms’ control of activities. Based on the tenets of overconfidence, it is expected that the overconfident managers keep on INTERNAL control at less effectiveness. This is because they overestimate their own ability, and believe they can control events and risks, which are actually out of their control. This study used data collected from a sample of 90 firms listed in the TSE in the period 2007 to 2015, to test the hypothesis in logistic and panel data regression models. Findings indicated that there exists positive significant relationship between the managerial overconfidence and weaknesses in INTERNAL control, and that these managers are not able to mitigate the negative consequences of ineffective INTERNAL contorols (inefficient investments and low future operating efficiency).

Firms with high-quality INTERNAL control implement effective monitoring process, thereby containing managers’ ability in hoarding bad news, which in turn prevents them from sudden release of bad news in market and thus reduces stock price crash risk. Accordingly, the present study is concerned with exploring the association between the efficacy of INTERNAL control and stock price crash risk. To do so, a sample of 96 firms listed on the Tehran Stock Exchange were selected. The research hypothesis was tested using multivariate regression analysis model based on panel data. The results reveal that the efficacy of INTERNAL control can minimize stock price crash risk. The findings of this study not only fill the gap in the field, but also help policy makers, capital market regulators, and standard setters make informed decisions.

The present study, compare the views of members of professional groups and experts (including company directors and auditors) in relation to the necessity of a new report entitled "INTERNAL control report", aspects of usefulness and its impact on improving financial reporting.The research method used is Descriptive- survey method and according to research subject, statistical population of research including directors of firms listed in Tehran Stock Exchange and auditors employed in auditing organization and audit Institutions. Required information has been collected using questionnaires. For data analysis, use of comparison test of means.The results indicate that managers and auditors have agreed on the usefulness of the INTERNAL control report. From the perspective of managers in relation to the voluntary reporting INTERNAL CONTROLS, improve financial reporting. The auditors also believe that mandatory reporting management in relation to INTERNAL CONTROLS, financial reporting did not improve. Other results indicate that, between the directors and the auditors' opinion, there are significant differences in relation to INTERNAL control reporting.

INTERNAL CONTROLS quality is a tool for achieving better performance and a factor in risk exploration, fraud debarment and manipulation of financial statements. This research aims at exploring the effects of INTERNAL CONTROLS weaknesses severity on earning quality on the firms enlisted in Tehran Stock Exchange. To this end, the research data for the period after the enactment of INTERNAL CONTROLS instructions, during the years from 2012 to 2016 were analyzed. The research hypotheses, 140 firms (700 year-firms) were analyzed, using ordinary least squares regression. The results show that negative association between INTERNAL CONTROLS weaknesses and earning quality. That is, the weakness in INTERNAL CONTROLS reduces firm's earnings quality. In the following, the results show that negative association between INTERNAL CONTROLS weaknesses severity related to the accounting department and earning quality. Also, we find a no association between INTERNAL CONTROLS weaknesses severity related to the non-accounting department and earning quality.

Firms follow different business strategies. Recent researches introduce two kinds of strategies called “ prospector” and “ defender” strategies. Organizational theory suggests that prospectors probably have weaker INTERNAL CONTROLS and more audit report delay than defenders. Hence, the main goal of this research is to examine this theory in firms listed in Tehran Stock Exchange. To measure the kind of business strategy, the study employs Rezaee et al. (2013) model and to recognize Material Weaknesses of INTERNAL CONTROLS it uses external audit reports like Munsif et al. (2012). The sample consists of 127 firms during 2012-2015. Findings imply that “ prospector” firms have significantly weaker INTERNAL CONTROLS in audit report than defender firms. However, prospectors have fewer audits report delay than defenders. Findings of the first and second research hypotheses test confirm organizational theory and indicate that business strategy is a useful indicator for evaluating firms’ INTERNAL control strength. However, the findings of the third hypothesis test do not confirm this theory.

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.

AbstractThe purpose of this research is to rank the damages of the INTERNAL audit process in the environment of specific INTERNAL CONTROLS of industrial organizations. The method of the current research is a combination of sequential exploratory type. In the qualitative section, the obtained data were coded through the Grounded Theory method during 14 interviews and through the MAXQDA software, and then in the quantitative section, 100 questionnaires were prepared and sent based on the obtained indicators, and 85 questionnaires were received. In the quantitative stage, the reliability of the data was confirmed through Gronbach's alpha test. Also, structural equation modeling (SMARTPLS software) was used to determine the relationships between categories and to create consensus and ensure the indicators extracted from Delphi analysis. Then, using the Friedman test, the identified factors were ranked. The statistical population was financial managers, INTERNAL and independent auditors (experts) of industrial organizations, and the findings of the research showed that factors 1. Lack of sufficient independence 2. Not having a favorable organizational position 3. Lack of management support and attention 4. Lack of proper professional qualification have a higher priority as damage

The present study aimed to explain and determine the importance of effective factors on the effective evaluation of INTERNAL CONTROLS in the companies listed on Tehran Stock Exchange (TSE) during 2018-2019. The initial variables of the model were identified by content analysis technique. Then, for screening the identified variables, the opinion of 19 academic experts in INTERNAL control who were selected using purposive sampling were collected. 68 indicators in the form of 8 main criteria were presented using fuzzy Delphi technique in two stages. Then, the factors were prioritized using pairwise comparison questionnaire and fuzzy network analysis process technique. The findings of prioritizing the factors indicate that among the main criteria, the characteristics of the INTERNAL auditor are the most important factor in the effective evaluation of INTERNAL control. Then, the structure of board of directors, the characteristics of the independent auditor, and the process factors are ranked in the next priority. Also, ownership structure as the least important criterion is in the eighths rank. Therefore, identifying, explaining, and considering the importance of prioritizing the effective factors on the evaluation of INTERNAL CONTROLS provides a ground for enhancing effective evaluation of INTERNAL CONTROLS.