Impact of internal control regulations on the quality of accruals

Implementing, evaluating and monitoring effective internal control systems is a key determinant of the quality of financial reporting. In particular, high-quality internal controls reduce the deliberate manipulation of information reported outside the company. Reduces risks such as procedural errors and accidental estimates in the report, inherent operational risks and business strategies that may affect the quality of reported accruals. Therefore, the purpose of this study is to investigate the impact of internal control regulations in order to prevent errors and deviations in an effective and efficient manner on the quality of accruals. For this purpose, this study was conducted with 90 sample companies in a period of 12 years 2007-2018 in two stages by performing a comparison test of mean t-pair and Cramer test. Considering the results and comparing the explanatory power and accuracy of each research model, it can be said that at different levels of reliability, the models have appropriate and reliable validity and in terms of comparison, the average quality of accruals in the post-regulation period. Internal controls are significantly different from the previous period. The results showed that the quality of companies' accruals in the period after the establishment of internal control regulations is significantly different from the previous period.