Accounting and Auditing Research

Accounting and Auditing Research

Investigating the Relationship between Weaknesses with the Importance of Internal Control and Evidence of Actual Performance Manipulation in Companies Listed in the Tehran Stock Exchange

Document Type : Original Article

Authors
Ali Bayat 1
Jahangir Jodeiri 2
1 Assistant Professor of Accounting, Islamic Azad University, Zanjan Branch, Iran
2 PhD Candidate of Accounting, Islamic Azad University, Zanjan Branch, Iran
10.22034/iaar.2020.119061
Abstract
Inadequate internal controls not only increase the likelihood of misconduct, abuse and fraud in organizations, but also affect the independent auditor's report, and the auditor will not be able, in the absence of attention to the weaknesses in the internal control system, Provides a good report. Therefore, in order for managers to fulfill their duties and responsibilities to the satisfaction of the stakeholders in the company, and the auditors will be able to present the optimal audit report in accordance with audit standards, internal control systems will be based on The nature of the company should be designed and implemented so that auditors can rely more on the reliability of financial statements. This research investigates the relationship between weaknesses with the importance of internal control and evidence of actual performance manipulation in companies listed in the Tehran Stock Exchange and includes a major hypothesis that is a multivariate linear regression analysis in combination (year-corporation) ), Used. The research hypothesis was tested using data collected from the statistical sample of the study, which included 75 active companies in the Tehran Stock Exchange during the period of 1394-1394. Based on the test, the results show a significant correlation of weaknesses with the importance of internal control by manipulating real performance.
Keywords
Real Performance Manipulation
Weaknesses in Internal Control and Auditing
Accounting and Auditing Research
Volume 12, Issue 47
Autumn 2020
Pages 101-114