The Relationship Between the Weakness of Internal Controls and Fraudulent Financial Reporting with an Emphasis on the Adjustment Role of External Audit Quality

Iranian Journal of Accounting, Auditing and Finance

مقاله 2، دوره 2، شماره 4، اسفند 2018، صفحه 11-27   

نوع مقاله: Original Article

شناسه دیجیتال (DOI): 10.22067/ijaaf.v4i1.84426

نویسندگان

Marjan Samaie^* ؛ Yunes Badavar Nahandi

Department of Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran

چکیده

Fraud in financial accounting has grown significantly in recent years. With the financial crisis emergence in recent years, fraud in financial reporting has been entered in politics. Today, legislator assemblies, accounting, and management profession have paid special attention to financial reporting due to fraud and existing ways to prevent fraudulent behavior. Therefore, in this research, we investigate the relationship between the weakness of internal controls and fraudulent financial reporting with an emphasis on the adjustment role of external audit quality. This research was conducted during 2012-2017 years for active companies operating in Tehran stock Exchange by selecting 114 companies as a statistical sample and using logistic regression tests in EViews statistical software. The results showed that, contrary to society's perception, there is no statistically significant relationship between the weakness of internal controls and fraudulent financial reporting. The results also showed that external audit quality did not have a statistically significant effect on the relationship between the weakness of internal control and fraudulent financial reporting.
 

کلیدواژه‌ها

Fraudulent Financial reporting؛ weakness of internal controls؛ external audit quality

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