فصلنامه مطالعات تجربی حسابداری مالی
پیاپی 15 (پاییز 1385)

This study examines the relation between residual earnings and stock prices in Tehran Stock Exchange (TSE). The analysis is based on a residual income model that expresses the value of the firm in terms of book value of equity and residual income.  The model holds for any clean surplus accounting system. The study address  the question that whether book value per share (BV) and abnormal (residual) earnings per share (RE) have incremental and relative explanatory power or not. We find that RE have less explanatory power than BV. Also, we find that accounting book value of equity and residual earnings are positively and significantly related to current stock prices in Tehran Stock Exchange (TSE).

This paper  provides  evidence  on  relationships  between earnings and cash flow measures for the firms accepted in Tehran Stock Exchange (TSE) over a sample of 83 firms during the period of 1376- 1385. In so doing, we examine the external validity of a U.S.A study of these relationships by Bowen, Burgstahler and Daley (1986). We also extend their study through an industry analysis of the relationships.
Evidence is presented first that shows low correlations between traditional cash flow measures and a more refined cash flow measure. Second, traditional cash flow measures exhibit high correlations with earnings, while the more refined cash flow measure has a lower correlation with earnings. Finally, traditional cash flow measures better predict future cash flows than models based on earnings or a more refined cash flow measure. The industry evidence shows that the results on the first two issues, but not the latter issue, are generalizable across industry categories.

At present, following the establishment of the Iranian Association of Certified Public Accounts, the responsibility of expressing opinion on financial statements rests with the independent auditors. This responsibility, which entails rendering reliable services to the society, should be carried out according to pre-determined bases. Such fully thought bases, the objective thereof is to standardize financial reporting, are called Accounting Standards.
The discussion in the present research is whether after several years from the date the Accounting Standards, ratified  by Audit Organization, are mandatory the auditors are aware of these standards and the modifications thereto to implement them  in  the  process  of audit work or are ignorant of these standards and carry out their work relying on their previous   knowledge?
The results of this research show that about 65.5% to 81.9% of auditors have sufficient knowledge of Accounting Standards issue by Audi t Organization but this knowledge in all levels are not the same. Also, the level of auditing society's knowledge of these Accounting Standards is between 62.05% to 67.75%, but varies for different level of seniority and expertise.