Internal Audit, Board of Directors and Financial Reporting Quality
Journal Title: International Journal of Finance and Managerial Accounting - Year 2017, Vol 2, Issue 8
Abstract
High-quality internal audit is expected to lead to high-quality financial reporting. High-quality financial reporting expresses itself in earning quality. Earning quality has been playing a key role in capital market for a long time. Finance users pay special attention to earning quality because they make their decision based on it. On the other hand, the market economy will experience awful, irrecoverable losses if organization’s performance isn’t reflected in its earnings. Thus this research aims at investigating the relationship between internal audit quality, board of director quality and financial reporting. Research data, obtained from Tehran stock exchange’s official website, showed that 223 firms had internal audit department. Only 130 firms met involvement criteria, to which research questionnaires were sent. Finally 59 questionnaires were approved as acceptable, and were taken as research sample. Findings showed that high-quality internal audit will lead to high-quality financial reporting. Also, strong board of directors will reinforce this relation.
Authors and Affiliations
Sahar Sepasi, Zahra Dianati Deilami, Salman Manzari Tavakoli
Keywords
Related Articles
- EP ID EP535115
- DOI -
- Views 75
- Downloads 0
A Compound Decision Support System for Corporate Planning
Providing a plan for any corporate or firm at macro level, as an organization or enterprise resource planning has particular importance nowadays. To meet the enterprise resource planning needs applications software packa...
Forecasting Credit Risk in Banks Listed on Tehran Stock Exchange
The present study aim is to offer a systematic method of assessing the credit risk of banks and also to identify key indicators using Decision Making Trial and Evaluation Laboratory (DEMATEL) technique as well as using L...
Impact of Presence of Women in the Board on the Weakness of Internal Control
The board of directors is the head of the supervisor and controller in the organization's system. Since the emergence of widespread changes in the business environment has led organizations to take advantage of diverse s...
Time-Varying Modeling of Systematic Risk: using High-Frequency Characterization of Tehran Stock Exchange
We decompose time-varying beta for stock into beta for continuous systematic risk and beta for discontinuous systematic risk. Brownian motion is assumed as nature of price movements in our modeling. Our empirical researc...
Reputation Risk Management in the Framework of Enterprise Risk Management: Evidences from an Active Financial Institution in the Capital Market of Iran
Reputation risk as one of the most important risks in any competitive industry and market should be considered before all the risks of the enterprise which also affects other risks. This research aims to review and manag...