The Effect of Intellectual Capital and Social Capital on Fraud Detection and Audit Errors Types I and II

This study examines the impact of intellectual and social capital on the detection of financial statement fraud and errors of the I and II types of audits of companies admitted to the Tehran Stock Exchange. The logistic regression model was used to test the hypotheses. The research hypotheses were also tested using a sample of 187 companies from 2012 to 2017 using the logistic regression model based on the consolidated data technique. The results of the hypothesis test showed that there is a positive relationship between intellectual capital and social capital with fraud detection and a negative and significant relationship between intellectual capital and social capital with the I and II types of audit errors. Since there have been very few researches in this field and the present research was conducted in Iran, an emerging economy with special economic conditions, it can contribute to the development of science and knowledge and also solve the gap in the subject literature.