The role of agency costs due to the change of financial manager and auditor turnover on the internal controls weakness

Internal controls are a process that is designed and implemented by management and other staff to ensure reasonable achievemented by management of the entity's objectives in terms of reliability of financial reporting, the effectiveness and efficiency of operations, and compliance with applicable laws and regulations. auditors and financial managers of organizations play major a role in improving, effectively and improving the structure of the internal control system and cost effective of their organization and will reresult in a more efficient financial system for their organization.Therefore, the purpose of this study is to investigate the effect of changing financial officer and auditor turnover on the internal controls weakness and also to investigate this effect in companies with representation problems for companies listed on the Tehran Stock Exchange for years 2013-2019. Analysis of research data using a logistic model has shown that the change of financial manager and the volentory auditor's turnover has a significant and positive effect on the internal controls weakness; While the auditor's mandatory turnover has not had a significant effect on the internal controls weakness. The results also show that the effect of changing the financial manager and the volentory auditor's turnover on the internal controls weakness in companies with agency problems is significant. The findings of the present study can be very important in terms of improving the company's management decisions and control system and especially improving the quality of financial reporting by identifying the factors affecting the weakness of internal controls in companies with agency problems.