فصلنامه مطالعات تجربی حسابداری مالی
پیاپی 69 (بهار 1400)

Auditors use professional judgment throughout the audit process. If the auditor's philosophical thinking has the comprehensiveness, reflection, and flexibility, it will lead to more professional judgment. Also, due to the increasing attention paid by audit firms to timing budgets as a measure of efficiency, their difficulties in measuring audit quality have exacerbated the potential conflict between control costs and access to high quality audits. The purpose of this study is to investigate the effect of auditor's philosophical mentality on the auditor's professional judgment as well as the effect of time budget pressure on auditor's professional judgment and the effect of time budget pressure on the relationship between auditor's philosophical mentality and auditor's professional judgment. The research method was descriptive-survey and data were collected from a questionnaire distributed among auditors of auditing organization and auditing institutes member of CAA including all audit partners, managers and supervisors. The results showed that there is a positive and significant relationship between the three dimensions of philosophical mentality and professional judgment in the auditing firms of the member of the Iranian Society of Certified Public Accountants. Due to increased budgetary pressure, non-professional behavior is also more likely to occur. Thus, the mentality of completing the work due to budgetary pressures precludes auditors from applying the optimal philosophical mindset, and this may cause the auditor to judge superficially

This research aims to investigate the role of independent auditors and audit committees (AC) in mitigating the fraud risks. Prior studies have showed that all auditors or audit committees are not equally adept at identifying and reducing fraud risks by using non-financial measures (NFMs). On this basis, the present research evaluates the effects of independent auditors and AC chairs on likelihood of fraud occurrence on financial statements. In this regard, some hypotheses are formulated to test relationships of auditor efforts, auditor tenure, AC chairs, auditor expertise and AC chair expertise with the likelihood of fraud risk reduction. This study’s research population covers the corporates listed on Tehran Security Exchange in 2014-2018. Hypotheses were tested using logistic regressions. Findings indicate some significantly negative relationships between auditor efforts, auditor tenure, AC chairs, auditor and AC chair expertise with fraud risks. Also, no significant relationship was found between expertise of AC chairs and fraud risk likelihood. The results indicate that audit processes can mitigate fraud risks, however, not all types of AC expertise can be helpful.

A review of the accounting theoretical literature confirms the role of CEO human capital as a valuable intangible asset for the company. The purpose of this study is to determine the effective criteria on the CEO human capital and to explain a comprehensive and multi-criteria model for measuring the CEO human capital of Iranian corporate and evaluate the impact of that on the Earnings Forecasts Quality. For this purpose, firstly, the CEO human capital criteria were identified according to Iranian information environment and experts' opinions regarding the weight and importance of each of these criteria collected through a questionnaire and explained using the Shannon entropy technique of comprehensive CEO human capital model. Then, using the proposed model, the CEO human capital index was calculated for a sample of 70 the firms listed on the Tehran Stock Exchange during the period 2012-2017 and the impact of CEO human capital on Earnings Forecasts Quality was tested by estimating the regression model. The results of the research show that Education level, work experience (tenure) and industry-related field of study are recognized by the CEO as important criteria from the experts' point of view. Also, the results of the analysis of the research hypothesis showed that the improvement of the CEO human capital index has a positive effect on the horizon of earning forecast and reduces the bias of earning forecast. While the impact of the CEO human capital on the error of earning forecast and the range of earning forecast was not confirmed.

Objectivity is one of the four fundamental principles of internal auditors Code of Ethics. In 2010, The Institute of Internal Auditors (IIA) introduced the Value Proposition and objectivity is one of the three core elements of it. Also, according to Auditing Standard No. 610, objectivity is one of the main components of internal auditing. Use of internal Audit Function (IAF) as a Management Training Ground (MTG) is in companies that internal auditors are promoted to executive positions. This can impair their objectivity and affect the reliance of independent auditors on their work. So the purpose of this study is to investigate the level of the External Auditor’s Reliance Decision on the Internal Auditors Function as a MTG. Because limited research has examined the impact of using IAF as a MTG, Therefore, in this regard, the relationship between the External and Internal auditor is not well explained, therefore, the purpose of this study is to investigate the reliance of independent auditors on the work of internal auditors according to the strategy of MTG. The statistical population of this study is External auditors including partners, managers, senior supervisors, and senior auditors of Iranian audit firms whose clients have an active IAF. In this survey, 100 questionnaires were collected and analyzed. The results of the study show that external auditors perceive internal auditors employed in an IAF used as a MTG to be less objective. The results also showed that external auditors perceive the competence and due professional care of IAFs used as

The purpose of this study is to investigate the moderating effect of auditing quality on the relationship between financial reporting quality and initial public offerings (IPOs) underpricing of stocks. The population of this study is the companies listed on the Tehran Stock Exchange (TSE) and OTC of Iran. The statistical sample consists of 230 companies in the period of 18 years, from 2001 to 2019. Data were analyzed using multivariate regression and Eviews software. The results showed that on average, 25% of the initial public offering underpricing of stocks occurs in the Iranian capital market. In addition, the findings of the regression analysis using the Eviews software indicated that the financial reporting quality has a negative and significant effect on the initial public offerings underpricing of stocks. In other words, the high financial reporting quality prevents the initial public offering underpricing. It was also found that audit quality (in terms of the type of auditor's opinions) enhances the relationship between financial reporting quality and the initial public offerings underpricing of stocks. However, the size of the audit firm and the auditor's tenure do not moderate the relationship. In general, study findings suggest that buying stocks in the initial public offering is highly attractive. Auditors can also improve audit quality with greater rigor and modified opinions. In this way, they strengthen the inverse effect of the quality of financial reporting on lower pricing than the actual initial public offering of stocks.

The value of a company is influenced by many factors such as the weakness of internal controls and the information quality resulting from it. In the meantime, level of investment and credit rating of the company can offset the weaknesses of internal controls and prevent devaluation of the company in this respect. The purpose of study was to investigate the effect of investment and credit rating on relationship between internal control weakness and firm value.This study was a descriptive- post event one in nature and method, an applied one objectively. To test the research hypotheses, 112 companies listed on the Tehran Stock Exchange for the period 2012 to 2018 were selected and studied. The results of hypothesis testing showed that internal control weakness had a negative effect on firm value and Investment has no effect on the relationship between internal control weakness and firm value but credit ratings has effected relationship between internal control weakness and firm value and increases the Firm value. In other words, a high credit rating, as an alternative to weak internal control, prevents from increase in the cost of capital.

Critical thinking in any profession will help the dynamism of that profession to create responsibility. Thinking that better understands employees' deviant behaviors such as financial distortion and fraud, and the auditor will have more effective understanding and intuition in such situations. This research seeks to identify the approaches of critical thinking of auditors and its representation in the form of link analysis. In order to identify critical thinking approaches in the profession, systematic search has been used in theoretical foundations with the help of accounting experts. Through link-analysis, critical thinking approaches in the profession have been identified and as a result, components of analytical ability, inferential ability and intuitive ability as Important dimensions in the formation of critical thinking in the auditing profession were identified and after confirmation of Delphi analysis, they entered the section of analysis of relationships between links and systemic effectiveness. The results showed that in order to strengthen critical thinking approaches in professional judgments, the existence of technical and specialized knowledge is considered as an important stimulus that gives consequences such as improving the level of intuition and the power of mental analysis based on the review of documents to the auditor