sohrab osta

The Main Objective Of This Study Is To Evaluate The Usefulness Of Agile Manufacturing Systems On Operational And Financial Performance In Automotive Parts Companies In Semnan. It's Probable, Jit Production And Jit Purchasing Strategies Are Factors That Improves Agile Manufacturing System, Therefore, These Two Variables Were Considered In The Research Model. Some Of The Data From This Study, Such As Financial Ratios, Were Extracted From The Financial Statements Of Companies And Some Of The Data Were Collected Through A Questionnaire Method. Because Of The Complexity Of The Model To Data Analysis, Partial Least Squares Method Was Used By Using Smart Pls Software. The Results Showed A Significant Positive Effect Between Jit Purchasing Strategies And Agile Manufacturing System But Jit Production Has No Significant Effect On Agile Manufacturing System. By The Way, Results Indicate Agile Manufacturing Has A Significant And Direct Effect On The Financial Performance And Operational Performance Of Firms Studied.

The purpose of this study is to investigating the relative efficiency of commercial banks in the Iraqi Stock Market using Data Envelopment Analysis method.

Design/methodology/approach: 

Commercial banks in the Iraqi stock market were used to test the hypotheses. The final sample covers 11 banks between 2015 and 2022. In this model of data envelopment analysis, the hypothetical unit that is on the efficiency limit is called the virtual unit. The value of λ indicates the combination of reference units used to make the virtual unit of each unit. Then, the amount of excess input in each of the inefficient units and the amount of output deficiency in each of the inefficient units are calculated. Finally, the target values, which are the optimal input and output values, are calculated.

The proposed model that was applied to commercial banks in the Iraqi stock market in the desired period of time, adopts a limited approach to target unit weights for DEA which resulted in the target values that is the optimal values of inputs and outputs.

Originality/value: 

In the banking sector, the relationship between inputs and outputs is complex. Therefore, by strategic selecting, the optimal weights of the input and output, we can optimizing the efficiency of the decision units (DMU). This method effectively examines the complexities related to the inputs and outputs of homogeneous units using conventional data envelopment analysis (DEA) models to evaluate the efficiency of these units. In addition, this paper further advances the literature by examining the relative efficiency of commercial banks in the Iraqi stock market in the context of the emerging market, Iraq.

The purpose of this research is to examine the dynamics of conditional correlation between the returns of mutual investment funds (4 selected funds) and the return of the total index of the Tehran Stock Exchange during the period from the beginning of September 2013 to the end of Faroudin 1400.

In order to achieve this goal, dynamic conditional correlation (DCC) and asymmetric dynamic conditional correlation (ADCC) econometric techniques, which are multivariate conditional heterogeneous variance (MGARCH) models, have been used.

The results of the estimation of EGARCH models for conditional variances indicate that there is asymmetry in the conditional variance equation for all the return series (other than the output of the Export Development Fund), so that bad news more than well news cause to further increased the turbulence of returns. The results of the DCC and ADCC models showed that the asymmetric parameter is only significant between the total returns of the market and the return on the brokerage business, and in other models, in the conventional level of knowledge, there is evidence of asymmetry in conditional correlations Does not exist.

The results of the current research indicate that bad news has a greater impact than good news on the status of funds; In fact, funds are conservative in the face of good news and relatively passive in the face of bad news.

Contribution: 

The lack of sufficient strength in facing the market with bad news can be considered as the major problem of investment funds.

The main goal of this research is to design a model to perform the supervisory duties of the Court of Accounts in order to prevent, track and deal with corruption. To design this model, it was used to examine the content of relevant laws and regulations and benefit from the results of valuable researches. The final model was the result of benefiting from the opinions of 12 experts of the Court of Audit. The method used to collect experts' opinions in this research is the focus group. After holding 4 focus group meetings, the results showed that the relevant model can be explained in two dimensions (including six subsets); (1) The mechanisms of the National Court of Accounts in the field of fighting corruption, which includes activities and inherent duties that the auditors themselves must carry out in order to deal with the corruption of the executive branch. These duties are carried out through auditing, handling and subtracting the budget, and (2) the supervision of the Court of Accounts of the country on the duties prescribed for the executive bodies in the field of fighting corruption, which these duties are the supervision of the court on the duties prescribed for the executive bodies in the field of preventing the occurrence of corruption. It refers to tracking and discovering corruption as well as dealing with the crime of corruption by the institutions. The details of each section have been described based on the content of the focus group meetings. Considering that this model has made a proper separation and explanation of the tools at the disposal of the court and the legal power of the court, it can be of great help in fulfilling the supervisory and audit duties of the court.

The purpose of this study is to investigate the relationship between Earnings persistence, institutional investors monitoring, and types of political connections in companies listed on the Tehran Stock Exchange. The statistical population of this study is all companies listed on the Tehran Stock Exchange from 2015 to 2021 and the number of samples is 105 companies. The regression analysis method and Ivory statistical software were used to analyze the research data. The results showed that institutional oversight in companies with political connections has an effective role in increasing profit stability. The selection of large auditors by companies with political connections has no significant relationship with profit stability. However, the longer the term of the CEO of companies with political connections increases, the more stable the profit. The results generally indicate a significant relationship between profit stability, institutional oversight, and various types of political communication.

Working capital management is crucial for business growth and survival as it maximizes enterprise value and shareholder wealth, thereby maintaining competitive conditions and optimal performance. This study identified and explained accounting variables determining operational efficiency (OE) of the companies listed on the Tehran Stock Exchange (TSE), Iran, in light of working capital items. The statistical population consisted of all companies, and the samples were 112 cases listed during 2016-2020. Utilizing an applied, descriptive-correlational research design, the relationship between the variables was then established. The dependent variable was OE, evaluated using data envelopment analysis (DEA); and the independent ones were working capital items and dividend growth rate. To investigate the effect of the independent variables on the dependent one, eight hypotheses were formulated, and multivariate linear regression with panel data in a fixed-effects model was implemented. Testing the hypotheses at a 95% confidence interval demonstrated that average period of collection of claims, average debt repayment period, dividend growth ratio, cash holding level, and liquidity ratio have a significant positive effect on OE. Nevertheless, the cash conversion cycle, and average inventory turnover period have negative impacts. Managers are thus suggested to identify working capital items and exploit them along with short/long-term goals in companies. This is practical in evaluating financial flexibility and solvency, facilitating optimal liquidity, and increasing business profitability and performance. Furthermore, learning about such items is helpful to investors, creditors, and analysts to make optimal decisions.

Considering the important role of managers in the success of firms, the present research investigates the effect of managerial ability and managerial incentives on the firm's performance. Specifically, this study investigates how the managerial ability factor can have a significant impact on the profitability and risk of firms. By doing so, this study can provide several policy implications about how managerial ability can influence a firm's decisions and its related business policies. The statistical population of this research is the firms admitted to the Tehran Stock Exchange during the period of 2015 to 2019 and the sample includes 140 firms. The data of the research was extracted from Rahvard Navin software and the panel data method was used to estimate the model. In this study, the independent research variable is the managerial ability (Demirjan et al. model, 2012) and managerial incentives (CEO cash bonus), and the dependent variable is the firm's performance, where the firm's profitability and risk indicators are considered as performance criteria. The results of the research show that the managerial ability and cash reward of the CEO have a positive and significant relationship with the firm's profitability, in other words, more capable managers with high managerial incentives can have better profitability. Also, the ability of the managers and the CEO's cash bonus has a positive and significant effect on the firm's risk. The coefficients and significance levels related to control variables also show that firm size, sales growth, and firm growth have a positive and significant effect on firm profitability and firm risk. Accordingly, management's ability and motivations can affect the firm's decisions, business policies, and the firm's performance, including the firm's profitability and risk.

Performance evaluation is the basis of many decisions and plans that can lead to the success of the organization, and efficiency is considered a very suitable criterion for evaluating the performance of companies and organizations. Based on this, the purpose of this research is to investigate the performance of agencies and counter offices of the contracting party of the Health Insurance Organization by measuring efficiency using the technique of data envelopment analysis.

In this study, the data of the representative offices and counter branches of the contracting government of Iran Health Insurance Organization in Ilam province, Iran in the third quarter of 2021 were analyzed. For data analysis, non-radial data envelopment analysis model was used, in which evaluation indicators were selected using confirmatory factor analysis method and using Smart PLS software. The SBM model was used to determine the efficiency, and finally, the Super-SBM method was used to rank the efficient units.

The research showed that among the examined units, during the evaluation period, 4 units had efficient performance and 12 ineffective units, among the efficient units, the unit with the best performance was determined and among the inefficient units, the unit with the worst performance was determined.

In the evaluation period, the number of inefficient units was more compared to efficient units. It is recommended to measure the efficiency and productivity of the counter offices and branches of health insurance contracting parties in different cities of Iran, especially the provincial centers, on an annual basis, so that by providing practical solutions, the situation of the agencies and offices can be improved. It is also necessary for them to be fully aware of their expectations and to be more responsive to their clients.

Todays, business environment is facing a lot of uncertainty, and this increases the importance of budgeting in companies. This is why in recent years; various researches have been conducted in this field. Accordingly, this paper aims to evaluate them and answer to these questions: “what are the budgeting weaknesses in companies? What are the budgeting improvement obstacles in companies? And what are the approaches to improve budgeting in companies?” So, we search journal papers in this field using a systematic literature review and based on PRISMA protocol. After screening papers based on eligibility criteria, 32 papers were finally approved as papers related to the purpose and research questions. For achieving the trustworthiness of data and research findings, while using valid databases and applying a systematic process in literature review, research input sources were present to two experts and in addition an attempt was made to provide a rich description of the research process. Then, by analyzing the selected papers, 9 weaknesses, 6 obstacles and 20 improvement approaches were extracted. finally, considering the theoretical gap of existing researches, suggestions for future researches were presented.

The marketing capability of a company, as one of the essentials of its success and survival, is comprised of a set of skills and knowledge that can improve company performance, and consequently increase its value, via identifying target markets, conducting customer needs assessment, addressing customer orientation, and utilizing resources. Accordingly, the present study aims to identify the accounting variables explaining the marketing capability of the company and its effect on operating revenue, return on assets, and stock prices. The statistical population includes the companies listed on the Tehran Stock Exchange in 2011-2020, selected using a screening of 100 companies as the study sample. In order to measure marketing capability, the stochastic frontier approach and the Stata 14 software are employed. The study findings at a 95% confidence level demonstrate that selling, general, and administrative expenses, trade receivables, intangible assets, cumulative sales volume, and retained earnings shape profit margin, and then explain the marketing capability of the company. As well, multivariate regression is utilized to test other research hypotheses, through combined data and the Eviews 9 software. The study findings at a 95% confidence level reveal that marketing capability has a significant positive effect on two performance variables in the company, viz. operating revenue and return on assets. In addition, such a significant positive impact can be observed on stock prices. Accordingly, the higher power and talent of the company in the field of marketing enriches its operating results and augments its value. Other research outcomes establish that the company’s financial leverage has a negative effect on its operating revenue, return on assets, and stock prices, but cash flows positively affect its operating revenue and stock prices. Furthermore, the ratio of market value to book equity in the company has a significant positive impact on its operating revenue and stock prices. The results of the present study can thus help managers in budgeting assets and expenses that affect company performance, aid investors in terms of successful stock selection, and even guide researchers in the fields of management and marketing.

Some characteristics of client management can shape auditors' mentality, attitudes, and behaviors through various mechanisms, and even challenge their judgment as one of the basic pillars of an independent audit. Therefore, one of the main objectives of the present study is to investigate the effect of charismatic client management among the threats to auditor impartiality on auditor judgment and decision-making process. The other objective is to reflect on auditor's rank and organizational identity, as the factors neutralizing these threats, on auditor judgment. The trusted auditors of the Tehran Stock Exchange, including those involved in private institutions and Iran Auditing Organization, constitute the statistical population in this study, in which the data in 2020-2021 were collected using a questionnaire. The target sample consists of 170 independent auditors, and the research hypotheses were tested via the Smart PLS software. The study findings at 95% confidence interval demonstrated that charismatic client management has a significant positive effect on client identification and auditor advocacy attitude. Moreover, client identification and auditor advocacy attitude have a significant negative impact on auditor objectivity. On the other hand, auditor's rank and organizational identity improve objective judgments. Accordingly, auditors can be affected by client management even though they are not a member of their institution, but client influence is less in higher-level responsibilities of the audit firm. Thus, the results of this study can be exploited by standard developers, the Iranian Association of Certified Public Accountants, as well as independent auditors and researchers.IntroductionJudgment and decision-making have been documented as the main pillars of auditing, to the extent that auditors are always required to exploit their professional judgment and decision-making during the audit process (Khoshtinat & Bostanian, 2007). Auditors' professional judgments are often influenced by professional and constructive auditor-client relationships. In this respect, identifying the significant factors that might threaten auditors' objective judgments and then undermine their objectivity, impartiality, and independence following these relationships is so important that it has received much attention among those involved in developing standards on auditing (Ashforth et al, 2008). Some characteristics of client management can thus shape auditors' mentality, attitudes, and behaviors through various mechanisms, and even challenge their judgments. From this perspective, charismatic client management is among the major factors that make threats to auditors' impartial judgments (Akbari & Jahanshad, 2021). Therefore, the first objective of the present study is to investigate the effect of charismatic client management among the threats to auditors' impartiality on auditors' judgment and decision-making process, and the second objective is to reflect on auditors' ranks and organizational identities, as the factors neutralizing these threats, and their effects on auditors' judgments.In this regard, the general research questions addressed were as follows:Does charismatic client management have an effect on auditors' judgments through client identification?Does charismatic client management have an effect on auditors' attitudes, mentality, and behaviors toward clients?Do auditors' attitudes toward client and client identification affect auditors' judgments?Do auditors' ranks and organizational identities have a neutralizing effect on dealing with threats to auditors' objective judgments? Materials & Methods Considering its paradigm, a descriptive-correlational design was used in this applied quantitative research for data collection and analysis, based on structural equation modeling. The trusted auditors involved in private institutions and Iran Auditing Organization also constituted the statistical population in this study, and the statistical sample included 170 independent auditors, of which the data were collected through a questionnaire in 2020-21.A standardized questionnaire, in the form of open- and closed-ended items, was employed in this study. The auditor's rank was further determined using six categories, viz., 1=auditor, 2= senior auditor, 3=audit supervisor, 4=audit manager, 5=senior audit manager, and 6=audit partner. In order to evaluate auditors' objective judgments, the scenario approach centered on the Client Agreement Index by Bamber and Iyer (Bamber & Iyer, 2007) was practiced. The biggest client identification and auditor's occupational identity were also evaluated based on the Organizational Identification Scale, developed by Mael and Ashforth (Mael & Ashforth, 1992) and Bamber and Iyre (Bamber & Iyer, 2007), and the necessary revisions were made to its items with reference to the study by Svanberg, Öhman, and Neidermeyer (Svanberg et al, 2017). The given questionnaire consisted of five items and a five-point Likert-type scale. Another part of the questionnaire was related to the evaluation of auditors' advocacy attitudes, which included eight items to examine the levels of auditors' advocacy attitudes toward clients based on a five-point Likert-type scale. To measure auditors' advocacy attitudes, the scales established by Pennington et al. (Pennington et al, 2017) and Badpa and Osta (Badpa & osta, 2021) were employed. Charismatic client management was correspondingly measured by the local Charismatic Leadership Questionnaire designed by Rezaiyan et al. (Rezaeyan, et al, 2009), containing 15 items and three dimensions, i.e., environmental awareness, aligning an organization with visions, and modeling, based on a five-point Likert-type scale.  FindingOnce the measurement model of the research variables was confirmed using confirmatory factor analysis, path analysis was utilized to test the research hypotheses. The summary of the results of evaluating the structural model in this study is illustrated in the following table:Table 1: A summary of the evaluation results of the structural model of the research   Direct pathPath coefficientT Statistics (|O/STDEV|)P ValuesHypothesis testing resultsCharismatic Client Management → Client Identification0.4046.1920.000Not rejectedClient Identification → Auditor’s Client Acquiescence0.1782.4020.017Not rejectedAuditor's Organizational Identity → Auditor’s Client Acquiescence-0.3114.3770.000Not rejectedCharismatic Client Management → Auditor's Advocacy Attitude0.2132.3970.018Not rejectedAuditor's Advocacy Attitude → Auditor’s Client Acquiescence0.2163.2600.001Not rejectedAuditor's Rank  → Auditor’s Client Acquiescence-0.1822.7820.006Not rejectedSource: Research findings  Results & ConclusionBased on the results of testing the first and second research hypotheses, charismatic client management has a positive effect on client identification, and then client identification has a negative effect on auditor's objective judgment. These findings are consistent with the results reported by Svanberg et al. (Svanberg et al, 2017), Bamber and Iyer (Bamber & Iyer, 2007), and Badpa and Osta (Badpa & osta, 2021), and can be further explained based on Social Identity Theory. According to this theory, the specific characteristics of clients can directly and indirectly have a negative effect on auditors' objective judgments through client identification.Considering the results of testing the third research hypothesis, auditors' organizational identities have a positive effect on their objective judgments. With regard to the significant positive effect of organizational identity on the dimensions of professional self-doubt in independent auditing, a higher organizational identification can thus improve auditors' professional behaviors, and consequently their objective judgments (Rezaei et al, 2017). Testing the fourth and fifth research hypotheses also showed that charismatic client management has a positive effect on auditors' advocacy attitudes to clients, and such attitudes have a negative effect on their objective judgments. To elucidate these findings, it is argued that client management characteristics can influence auditors' attitudes and thinking, as the principles of organizational leadership have not considered any limits for clients' influence on the attitudes of people who are not officially employed by that organization (Badpa & osta, 2021; Akbari &  Jahanshad, 2021).In addition, auditors' advocacy attitudes toward clients and their management affect their judgments, and auditors' advocacy attitudes toward clients indicate the degree of willingness to support clients' favorable accounting procedures in the state of ambiguity (namely, contradictory evidence) (Lembke & Wilson, 1998; Kock, 2015). These findings are in line with the results reported by Badpa and Osta (Badpa & osta, 2021), Bobek, Hageman, and Hatfield (Bobek et al, 2010), Pennington et al. (Pennington et al, 2017), and Badpa et al (Badpa et al, 2019).The results of testing the final research hypothesis correspondingly demonstrated that auditors' ranks have a positive effect on their objective judgments. In other words, the higher levels of the auditing institute can make more favorable judgments than the lower levels. Putting these results in plain words, it is claimed that auditors with lower ranks have more flexibility in dealing with clients in the face of challenging situations due to various reasons, such as the lower levels of occupational (or organizational) identification and experience, and younger age. These findings are also in harmony with the results in Bamber and Iyer (Bamber & Iyer, 2007).Accordingly, auditors can be affected by client management even though they are not a member of their institution, but clients' influence is less in higher-level responsibilities of the audit firm. Thus, the study results can be exploited by the developers of standards on auditing, the Society of Certified Public Accountants, as well as independent auditors and researchers.Against this background, the effects of other dimensions of client management leadership on auditors' advocacy attitudes and the extent of their client identification, as well as the judgment and decision-making process, including initial judgment, evidence search strategy, evidence evaluation, and final judgments, can be investigated in future research.  * Corresponding author

Auditors are always looking to identify factors that can be used for estimating the risk of material misstatement more accurately at the level of financial statements. In this regard, this study examined whether decisions to hire or fire the staffs that make an important part of the company's operations help to anticipate accounting misstatements and, consequently, whether this affect the timing of auditor's reporting of auditor's fee and resubmission of financial statements.The research period of 1392-1398 was considered, during which 105 companies listed on Tehran Stock Exchange (TSE) were selected as the samples and the research hypotheses were tested by using Ordinary Least-Squares (OLS) regression and binary regression. The results of testing the research hypotheses indicated that the effect of abnormal investment in the staffs on the delay in submitting the auditor's report and restatement of financial statements was not accepted, but its effect on auditor's fee was accepted. Our results showed that the auditors of the sample companies were able to correctly estimate the risk of material misstatement caused by abnormal investment in labor and other factors and plan their proceedings to cover the risk of material misstatement through proper and timely planning. The results of this study provided evidence that auditors pay attention to red flags in financial reporting when reviewing financial statements.

Among the important issues in resolving ambiguities between client management and independent auditors is the type of relationships formed between client managers and auditors, which are affected by client management attributes such as the leading power of client CFO. The main objective of the present study is to investigate the effect of the leading power of client CFO on auditor advocacy attitude in judgment and decision-making processes. The statistical population consists of professional auditors, working in trusted audit institutions in the Tehran stock exchange in 2019. To this end, a total number of 153 auditors are selected. To collect the data and test the research hypotheses, a questionnaire and the structural equations modeling with the use of the AMOS software is employed. The results indicate that the leadership power of the client CFO has a significant positive effect on auditor advocacy attitude and client identification. Moreover, auditor advocacy attitude and client identification positively impact acquiescing to client-preferred position, in conditions of ambiguity. On the other hand, the findings show that auditors’ professional identity harms auditors’ acquiescence to client-preferred treatment. The results show that some of the client's attributes such as the leading power of the client CFO can destroy the objectivity in the auditor's judgment and decision-making process through the auditor advocacy attitude.

Identifying the factors affecting the cost of capital of the company is always one of the important issues for investors and managers. Therefore, in this study, the effect of quality of disclosure of financial information on the cost of capital of the company and also the effect of the CEO’s dual role on this relationship is examined. To calculate the company's capital cost, the Gordon model and the capital asset pricing model are used, and to measure the quality of disclosure, the quality of Kaznik's (1999) accruals and the disclosure index published by the Stock Exchange Organization are used. Also, the duality of the role of the CEO means that the CEO is simultaneously the chairman or vice-chairman of the board. Finally, the results of the test of research hypotheses on 148 companies listed on the Tehran Stock Exchange in the period 2012 to 2018 by regression method, showed that there are an inverse and significant relationship between the quality of disclosure and the cost of capital of companies. There was also no evidence of the duality of the role of the CEO on the cost of capital and the moderating effect of this variable on the relationship between disclosure quality and capital cost.

The purpose of this study is to investigate the relationship between financial and economic models with data envelopment analysis technique in evaluating the performance of investment companies. In order to achieve this goal, aggregate assets, total debt, total equity and total company expenses as input variables as well as income, net profit and operating profit are considered as output variables of data envelopment analysis model. According to The model of data envelopment analysis, the performance of investment firms was evaluated. Then, the performance evaluated in the form of regression model was compared with financial and economic models. In this study, two hypotheses were presented to examine the relationship between financial and economic models with the data envelopment analysis technique and designed regression model to test the hypotheses. In this research, the statistical population is the investment companies accepted in the Tehran Stock Exchange. Sampling from the research community is based on the method of judging sampling and systematic elimination. The research period is from 2014 to 2016. The results of the research hypothesis test show that there is a significant and inverse relation between financial models and data envelopment analysis model in assessing the performance of investment firms. There is also a significant and direct relationship between the economic models and the data envelopment analysis model in assessing the performance of investment firms.

The corporate performance assessment is a matter for current and potential stockholders. Therefore, the present study aims at explicating a model for performance evaluation of investment companies using the data envelopment analysis method, so that by applying PCA, the dependence between input and output variables is eliminated by decomposing to the main factors. The main question in this study is how to evaluate the performance of investment firms? In order to answer this question, all investment companies accepted in the Iranian stock exchange have been selected and the latest available annual reports of investment companies in year 2016, have been analyzed. To design the proposed algorithm, a DEA-PCA compilation approach was used which ultimately led to the design of a performance evaluation model. The results of the proposed algorithm show that out of 34 investment companies under review in 2016, only 4 companies with a performance score of one, are considered as efficient. In other words, 12% of investment companies are efficient and 88% are inefficient, which, of course, efficient companies are patternmakers for other companies

Due to the numerous environmental complications and the existence of numerous factors affecting managers’ decision making and the necessity of reductions in the government’s current expenses, the issue of efficiency has become the primary focus of organizations and based on the fourth development plan, performance-based budgeting has attracted the attention of governments and organizations. In performance-based budgeting, classifying operations is done so that goals are specified more clearly, the budgeting evaluation is easier and is related to its cost analysis and output is paid adequate attention to. The main goal of performance-based budgeting is the modification of public sector’s management and increasing the efficiency of its costs. This study is presented in three main parts. The first part presents the theoretical underpinnings and the literature of performance-based budgeting. The second part deals with the notion of performance-based budgeting in countries such as Canada and Iran. The third chapter then presents measures taken in relation to performance-based assessment and suggestions for its implementation.

The study tends to survey the effect of duration of auditing tenure on the quality of information uncertainty of business entities. The qualities of information uncertainty are measured via deviation measurements of forecasting EPS, forecasting error of EPS, and variability of stock return. These measurements established in the form of hypotheses are tested by regression of integrated data and generalized least square. The statistical society of this research was nonfinancial corporations in Stock Exchange of Tehran during 2002-2008 (1382-1388). The results of the study of 56 sample corporations showed that there is a significant and reverse relationship between the duration of auditing tenure and the deviation of forecasting EPS and forecasting error of EPS, and there is no significant relationship between the stock return and the duration of auditing tenure. Thus, increasing the duration of auditing tenure tends to decrease uncertainty to provided information by business entities. These findings support the view of auditor expertise and eliminate the concern about viewpoint of auditor independence.