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.

Establishing an effective Internal control system in economic entities increases the effectiveness and efficiency of operations and ensures the reasonable assurance of the quality of reporting and compliance with laws and regulations. According to organizational theory, companies with an aggressive strategy in comparison to companies with a defensive strategy are likely to report more significant Weaknesses in Internal Controls. The aim of the present research is to examine the relationship between the business strategy and Internal control over financial reporting of accepted companies in Tehran Stock Exchange. In this research, 135 companies have been selected during the period of 2010 to 2017 from the accepted companies in Tehran Stock Exchange. Research findings indicate that there is a direct and meaningful relationship between business strategy and the existing Weakness of Internal Controls in business entities. On the other hand, there is a positive and meaningful relationship between the business strategy used by the business entity and the improvement of Internal control Weaknesses in the coming years. The findings suggest that the business strategy can be considered as a useful indicator in assessing the strength of Internal Controls of the companies.

The purpose of this paper is to examine the role of financing constraints and environmental uncertainty in limiting the relationship between operational diversification and weak Internal Controls. For this purpose, data on 120 stock companies for the period 2007-2017 were extracted and logistic regression was used to test the hypothesis. According to the first hypothesis, product diversification has a significant relationship with weak Internal Controls. In addition, environmental uncertainty has a significant impact on the relationship between diversification and weak Internal Controls. Finally, financing constraints do not have a significant effect on the relationship between diversification and weak Internal Controls.

One of the most important reports is Internal control Weaknesses report that has been prepared by the listed companies of TSE for requirements of stock exchange. Determination of affecting factors on these reports preparation is useful for investors in strengthen control environment and in formativeness. On this basis, the aim of this study is the investigation of determinants of disclosure of Internal Controls Weakness in The firms listed in TSE. For this, the firms’ data for 4 years (2012 to 2014) about Internal Controls Weaknesses is analyzed by unbalanced panel data analysis method. The results show that there is a significant relationship between firm size, return on assets, firm age, income or loss, financial leverage, firm risk. the number of independent board members, the number of audit committee members that are financial expert, block stockholders, governmental investors, and disclosure of Internal control Weakness. These results can be useful in determining how to improve transparency of developing stock market of Iran.

Purpose: The aim of this research is to find a model to explain the role of personality traits and leadership styles of management in the Weakness of Internal Controls. Method: This research is an applied research with quantitative data. The big five components of Neo personality traits as well as the four leadership styles of Hersey and Blanchard are the independent variables of this research. Structural equations and partial least squares method have been used to test the research models. The research period is fiscal years 2019 and 2020 and the statistical sample includes 398 chairmen of the audit committees of companies listed on the Tehran Stock Exchange who have been selected using the screening sampling method. Results: The results indicate that Neuroticism personality trait and Telling leadership style have positive and significant effect on Internal Controls Weakness and impact of Agreeableness and Conscientiousness characteristics and Selling and Participating leadership styles is negative and significant. There was no significant effect on Extraversion and Openness characteristics and Delegating leadership style. Conclusion: The model designed in this research has high predictive power to explain the role of board’, s personality traits and leadership style in Internal Controls Weakness. Based on the proposed model, stockholders and other corporate governance top bodies, in selecting managers, are suggested to consider their personality traits, especially neuroticism, agreeableness and conscientiousness, and leadership style tendencies, including telling, selling and participating. Contribution: In this research, for the first time in Iran, the effect of personality traits and leadership styles of managers on company's Internal Controls Weakness was investigated and the results help to develop behavioral financial literature, corporate governance and related theories.

Purpose: The aim of this research is to find a model to explain the mediating role of leadership styles in the relationship between board personality traits and the Weakness of Internal Controls. Method: This research is an applied research with quantitative data. The four leadership styles of Hersey and Blanchard are mediating variables and the big five components of Neo personality traits are the independent variables of this research. Structural equations and partial least squares method have been used to test the research models. The research period is fiscal years 2019 and 2020 and using the systematic elimination method, 398 companies were selected from the companies listed on the Tehran Stock Exchange and Iran Fara Bourse. Results: The results indicate that some components of managers' personality traits have significant effect on their leadership styles and leadership style has a mediating role in the relationship between personality traits of Neuroticism, Agreeableness and Conscientiousness of managers and Weakness of Internal Controls, about the Extraversion and Openness personality traits, the mediator role is not significant. Conclusion: The model designed in this research has high predictive power. Based on the proposed model, stockholders and other corporate governance top bodies, in selecting managers, are suggested to consider their personality traits, especially Neuroticism, Agreeableness and Conscientiousness, and leadership style tendencies, including Telling, Selling and Participating. In this research, for the first time in Iran, the mediating role of leadership styles in the relationship between board personality traits and the Weakness of Internal Controls was investigated and the results help to develop behavioral financial literature, corporate governance and related theories.

The purpose of this study is to investigate the relationship between managerial ability and corporate transparency with an emphasis on the Weakness of Internal Controls. For this purpose, 122 companies listed in Tehran Stock Exchange during the period of 2008-2017 are selected and four indicators are used to measure corporate transparency: information asymmetry, information uncertainty, timeliness and reliability of information. To measure the management ability Dmryjan et al (2012) model is used. For testing the research hypotheses Stata software version 15 and regression model using panel data are used. The results of this study show that management ability reduces information asymmetry and information uncertainty and increases the timeliness and reliability of information disclosed. In general, we can say that there is a direct relationship between management ability and corporate transparency. Other results of the research show that the Weakness of Internal Controls has a significant effect on the relationship between management ability and indicators used to measure corporate transparency.

Due to the limited resources, in addition to the level of investment, it should be considered investment efficiency in decision making. The inefficiency of investment undermines the company's good performance and ultimately leads to a reduction in value creation for the shareholders of the company. The purpose of this study was to investigate the effect of the Weakness of domestic Controls on the inefficiency of investment in accepted companies in Tehran Stock Exchange. In this regard, data about 106 Tehran Stock Exchange members were used for the period from 2011 to 2015. To test the hypotheses, multivariate regression technique was used by using panel data. The results of the research hypothesis test indicate that Weakness of Internal Controls has a negative and significant effect on the investment level of companies. Other findings suggest that the Weakness of Internal Controls has a positive and significant effect on over-investment and lower investment (inefficiency). Therefore, managers need to implement measures to increase the quality of Internal control of the company in order not to face the lack of financial resources and the use of investment opportunities.

Internal control is a director’s board duty in which its proper and effective type ensures a relative assurance of the implementation of the company's policies as well as an effective audit field. Therefore, as much as possible, it should create and implement appropriate Internal control, which also examination of the impact of the board's gender diversity on this trend and shows differences in the behavior of men and women. The presence of a woman's representative on the board reduces the board's coherence and, as a result, makes the control and monitoring process more precise. In this study, Dawson's gender socialization theory is used to explain the moral difference between two groups of women and men. For the purpose of this study, the data of 152 companies listed in Tehran Stock Exchange during the period of 2011-2016 were tested using logit regression analysis. The findings confirm the negative impact of the presence of at least one female representative in the board composition on likelihood of Weakness in corporate Internal Controls. Accordingly, the presence of female delegate on the board is expected to create an environment in which the board's homogeneity disappears and the control and monitoring process becomes more precise.

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.