مجله پیشرفت های حسابداری
سال چهارم شماره 1 (پیاپی 62، بهار و تابستان 1391)

Fund or capital which is needed to finance a business or invest in a plan is prepared by different groups, those groups expecting a significant rate of return. Cost of equity of a business is equal to the minimum expected returns which a plan should include, and in this case investors will become eager to pay their fund for business. Research shows that various factors have effect on expected rate of return. Basu (1977) mentioned in his studies that those stocks that have larger P/E ratios will have a larger expected return. Bhandari (1988) described in his studies that depth ratio to total equity of shareholders as one of leverage ratios, have a relationship with expected return. Therefore, investors according to financial information published by companies and analyzing them through financial ratios, estimate risk of investment in companies and according to it, they demand specified expected return of their investment. And this rate is what we called cost of investment. Depending on the importance of the mentioned points, this research is representing the relationship between financial ratio and cost of stocks in Tehran Stock Exchange. Hypothesis 1- There is a significant relationship between liquidity ratios and cost of equity 2- There is a significant relationship between profitability ratios and cost of equity 3- There is a significant relationship between net cash flows From operating activities to operation profit Ratio and cost of equity 4- There is a significant relationship between leverage ratios and cost of equity 5- There is a significant relationship between market ratios and cost of equity 6- There is a significant relationship between return of Shareholders equity and cost of equity 7- There is a significant relationship between return of asset and cost of equity In this research we studied the relationship between financial ratios and the cost of equity during the period of 1382 to 1388. A sample of 60 TSE listed companies was selected and tested. Gordon Model was used to calculate equity cost and Multivariate Regression Model was used to test and analyze the hypothesis Results, discussion and The results of this research show that at a confidence level of 95%, there is a significant relationship between liquidity ratios, profitability ratios, leverage ratios, market ratios, and cost of equity.

Investment is one of the fundamental and crucial elements in the process of economical development of any countries. Stock markets as the symbol of investing fluctuate due to economical changes. Investing managers, managers and other people exchange their stock and other properties in this market. In order to sustain their funds and gain more profits these investors need to scrutinize factors affecting these markets under different economical situations. They try to invest their properties to gain the most profits and the least risk. Systematic risk (beta) as one of the most effective factors in predicting the appropriate required rate of return of portfolios helps investors in this regard. Understanding systematic risk of usual portfolio of various companies, investors consider financial investment more confidentially. Research questions and hypotheses: The aim of the present study was to investigate any significant relationship between company sizes (Market value of stocks, Book value of stocks, level of company sale, and trade volume of stocks) and ratio of price on benefit as an independent variable and systematic risk of usual portfolio as a dependent variable. The study includes one main hypothesis and five minor hypotheses. The main hypothesis states that there is a significant relationship between company size and systematic risk based on thecapital asset pricing model. The other research hypotheses are as follows 1) There is a significant relationship between market value of stocks and systematic risk based on thecapital asset pricing model. 2) There is a significant relationship between book value of stocks and systematic risk based on thecapital asset pricing model. 3) There is a significant relationship between level of company sale and systematic risk based on thecapital asset pricing model. 4) There is a significant relationship between trade volume of stocks and systematic risk based on thecapital asset pricing model. 5) There is a significant relationship between prices to earnings per share ration P/E systematic risk based on thecapital asset pricing model. This research is an applied research because the results of the study can directly be applied for analysis of the amount of stock systematic risk from financial lists. According to the types of variables regression and correlation coffined equations were applied in this research. The statistical sample of this study was all accepted companies in Tehran stock markets. 112 companies were selected according to systematic deletion rule based on screening financial lists. The study covered the period of 1383-87. The research hypotheses were tested with Pearson correlation to find any relationship. To measure the impact of each variables individually on dependent variable step by step regression analysis using the least square in the level of 95, Coefficient of determination (R2), adjusted coefficient of determination index (R2) were used. SPSS and Excel were applied for presenting statistical graphs, tables, modeling and analysis of data. The findings of the research revealed that there is no relationship between market value of stocks and systematic risk based on thecapital asset pricing model CAPM. No relationship was found between book value of stocks and systematic risk based on thecapital asset pricing model. Moreover, the data showed that there is a significant relationship between level of company sale and systematic risk based on thecapital asset pricing model. The analysis of data disclosed that there is a significant relationship between trade volume of stocks and systematic risk based on thecapital asset pricing model. However, no relationship was found between price to earnings per share ration P/E systematic risk based on thecapital asset pricing model. Based on step by step regression results it become clear that two variables--level of company sale and trade volume of stocks--which had significant relationship with systematic risk can predict 0.0317 systematic risk fluctuations. Discussion and The impacts of factors such as company size on systematic risks can shed some lights on this issue and guide investors to experience less risks. The sufficient information regarding company size and beta factor and the ease of their calculation persuade other researchers to study these concepts in depth. The empirical results provided support for significant relationship between variables; however some of these relationships were not significant and were not reliable. In other words, the under investigated variables could not meet more that 0.317 systematic risk changes. Although linear regression was applied to predicting the relationship between variables in this study, it is suggested to use non-linear, second level, algorithmic equation for further research because weak or no relationship in linear method does not indicate the lack of correlation or no significant relationship among variables.

Since the 1960s there has been an increased interest in accounting disclosure studies. In broad terms two significantly different approaches to researching accounting disclosure have emerged in the literature. The first approach is primarily based on sending questionnaire forms to a number of financial accounting users requesting them to rank specified accounting items in accordance with their degree of importance for decision-making processes. The second group addresses the association between a constructed disclosure index of mandatory, voluntary or total accounting disclosure and certain firm characteristics. This paper pertains to the second group of accounting disclosure studies and uses the scores assigned to each firms by Securities and Exchange Organization as a disclosure quality measure. Two reasons contribute to the importance of this study. First, disclosure quality has been receiving an increasing amount of attention in recent accounting studies. Secondly, this study provides insight into how the effects of certain firm specific characteristics, namely structural and financial variables may hold up in other international financial reporting and regulatory jurisdictions. Furthermore, the effects of audit firm size and “Implementary instruction of information disclosure for the firms listed in organization” on the disclosure quality of the firms listed in Tehran Stock Exchange (TSE) are investigated. The results of the analysis are expected to help explain the variation of current and prospective disclosure extent in light of the aforementioned firm-specific characteristics. Research Hypotheses: Given the purpose of the study, ten following hypotheses are developed and tested by using data gathered from 149 Iranian companies listed in Tehran Stock Exchange (TSE) for the period 1382 to 1387: a) There is a significant relationship between structure-related variables anddisclosure quality of the firms listed in TSE. 1. There is a significant relationship between size and disclosure quality of the firms listed in TSE. 2. There is a significant relationship between age and disclosure quality of the firms listed in TSE. 3. There is a significant relationship between ownership structure and disclosure quality of the firms listed in TSE. 4. There is a significant relationship between board composition and disclosure quality of the firms listed in TSE. 5. There is a significant relationship between industry type and disclosure quality of the firms listed in TSE. b) There is a significant relationship between financial-related variables anddisclosure quality of the firms listed in TSE. 6. There is a significant relationship between profitability and disclosure quality of the firms listed in TSE. 7. There is a significant relationship between financial leverage and disclosure quality of the firms listed in TSE. 8. There is a significant relationship between liquidity and disclosure quality of the firms listed in TSE. C) There is a significant relationship between audit firm size and disclosurequality of the firms listed in TSE. D) There is a significant relationship between “Implementary instruction ofinformation disclosure for the firms listed in organization” and disclosurequality of the firms listed in TSE. Post event inquiry researches have been used in this study (using historical information). For statistical analysis and to test hypotheses, descriptive statistics (mean and standard deviation) and inferential statistics (correlation-test, single and stepwise multiple linear regression, analysis of variance and paired test) are used. For measuring audit firm size and ownership structure, dummy variables are used. The findings of simple regression indicate that disclosure quality has a significant positive relationship with age, liquidity, profitability and size of audit and also a significant negative relationship with financial leverage and family ownership. Based on paired test, “Implementary instruction of information disclosure for the firms listed in organization” has a positive significant effect on disclosure quality of the firms. Furthermore, based on analysis of variance, type of industry is an effective factor on disclosure quality. However, no evidence confirming significant correlation between size and board composition with disclosure quality is found. According to the results of stepwise multiple regression, the four variables, financial leverage, size of audit, profitability and size of firm, explained 12 percent of disclosure quality changes. Discussion and Regarding the results of secondary hypotheses related to first main hypothesis, judging about this main hypothesis is difficult, because two hypotheses (of five secondary hypotheses) were rejected. However, confirming the secondary hypotheses related to second main hypothesis, this main hypothesis was confirmed. In other words, there is a significant relationship between financial related variables and disclosure quality of the firms listed in TSE. Furthermore, other main hypotheses (3 and 4) are confirmed. In other words, audit firm size and “Implementary instruction of information disclosure for the firms listed in organization” are effective factors on the disclosure quality of the firms listed in Tehran Stock Exchange (TSE).

High-profile corporate failures that occurred at the beginning of this century have raised concern about the reliability of companies’ financial statements. While the primary responsibility for preparing accurate financial statements rests with company management and boards, questions also have been raised about the quality and independence of external auditors. Regulators and standard setters have attempted to enhance audit quality through rules impacting on auditor independence (For example, the Sarbanes-Oxley Act of 2002) One factor the regulators are concerned that may impair auditor’s independence is long auditor tenure (the length of the auditor – client relationship). Their concern is that as the auditor tenure gets longer, auditors are more likely to compromise on their client's accounting and reporting choices in order to retain the client. Mandatory rotation of audit firms for a particular audit client is suggested as a means of improving audit quality through maintained independence and new “fresh eyes” on audits. However, the accounting profession has strongly resisted mandatory audit firm rotation, with potentially high costs of transition being provided as the prominent reason. The proponents of mandatory auditor rotation thus argue that setting a limit on the period of years an audit firm may audit a particular company's financial statements will improve auditor independence and audit quality. The opponents, however, argue that as auditors gain more experience from auditing the same company over time, they have better knowledge to determine whether the company's accounting and reporting choices are proper. Their argument suggests an improvement in audit quality as the length of auditor tenure increases. Following DeAngelo (1981) we define audit quality as the market-assessed joint probability that an auditor will discover a breach in a client’s accounting system, and conditional on discovery, report the breach. An important consideration in DeAngelo’s definition is the market-assessed probabilities, that is, it hinges on the market’s perception as to whether a given auditor will perform the audit competently and the perceived degree of auditor independence. On the other hand, the actual audit quality improves the reliability of financial information by reducing the noise contained in financial statements. Although the perceived auditor independence and competence may be positively correlated with actual auditor independence and competence, they are not necessarily the same. This study only examines levels of actual audit quality. Research Questions or hypothesis: The main objective of this study is the investigation of the effect of auditor tenure on audit quality in firms listed in Tehran stock exchange. Therefore, we formulate the two following hypothesis: Hypothesis 1: Auditor tenure affects current accruals. Hypothesis 2: Auditor tenure affects discretionary accruals. Following Myers et al (1981) we use Discretionary and Current Accruals as proxies for audit quality: Current Accrualsi,t =((∆CA i,t - ∆CASH i,t) – (∆CL i,t - ∆STD i,t)) and Discretionary Accrualsi,t = Accruals i,t – β0 + β1 ∆Revenue i,t + β2 PPE i,t where:∆CA i,t:change in current assets; ∆CASH i,t: change in cash and cash equivalents; ∆CL i,t: change in current liabilities; ∆STD i,t: change in short-term notes and current portion of long-term debt; βi: coefficient estimates from an OLS regression by firm-year; Accruals i,t: operating income-cash flow from operations; ∆Revenue i,t: change in net sales revenue; and PPE i,t: property, plant, and equipment-net. We scale all variables by beginning book value of total assets. For test hypothesis, We use the following regression: Accruals i,t = α + β1 Tenure i,t + β2 Size i,t + β3 Age i,t + β4 SCFO i,t + ε i,t where: Accruals i,t: Discretionary Accruals or Current Accruals; Tenure: the number of consecutive years that the firm has retained the auditor (We measure auditor tenure as of 1997); Age: the number of years for which total assets was reported; Size: the log of total assets; and SFCO: the firm's cash flow from operations divided by beginning book value of total assets. In this research, data of 72 companies are analyzed for the period of 2010-2003 on panel data basis and by using of the system of pooled regressions. Multivariate results, controlling for firm age, size, cash flows, indicate that auditor tenure has no significant effect on audit quality. Therefore, research hypothesis isnt confirmed. Discussion and While mandatory audit firm rotation is still under debate, prior studies have investigated the relation between audit firm tenure and audit quality. Most of studies find no evidence supporting the argument that audit quality decreases with audit firm tenure. Consistent with these studies, we find that auditor tenure has no significant effect on audit quality. Given this result, there are minimal, if any, benefits of imposing mandatory audit firm rotation onto Iranian firms. Further, given the costs involved in switching auditor, it does not appear that mandatory audit firm rotation would be beneficial to the market. In order to address the concerns that have arisen around auditor independence and audit quality, other initiatives are more likely to have a greater impact than imposing mandatory audit firm rotation. We note that as our sample cosists of only Iranian companies during a time period when periodic audit firm rotation is not mandatory, our result may not generalize to the setting in other countries or other setting that require periodic audit firm rotation.

The financial reporting system has always been confronted with crisis in attracting public trust. The increase in the number of manager's frauds which has often accompanied fracture of great companies with the world had caused some worries about quality of financial statement along. So, prevention or detection of fraud in financial statement has always been the focus of inventors, managers and auditors. Thus, because of its controlling trait (detecting & deterrent), using independent auditing services results in quality increase of financial statement creating enhanced value of accounting information. If the existence of some factors weakened auditing process, the effectiveness faces danger and this leads to a decrease of public trust, altering professional fame, spread of injustice and finally social damage. This paper considers materiality in auditing which is based on difference in auditor's judgments as one of the effective factors of controlling trait independent auditing (detecting) and then identifies its effect on auditor's attention in manager's fraud detecting process. Research Questions and Hypothesis The main question of this paper is as follow: Can materiality concept in auditing financial statements prevent of auditors attention to detect managers fraud? Questionnaire and visual evidence devices were used for gathering information. Subjects for the experiment included 82 audit seniors and managers that are working in audit organization and 124 audit reports published by that organization through the years 1386 and 1387. In order to analyze data One-Sample T-Test, Hotelling T-Test, Paired Samples T-Test, Manova Test and One Sample Proportion Test were used. Results indicate that: Auditors consider higher risk of aggressive reporting for those quantitative samples that are more important and that they would pay more attention to the less important ones if they find out the manager's fraud. In other word, "the concept of materiality" in financial statement auditing prevents auditor's attention in manager's fraud detecting process. Discussion and Survey of audit reports indicate that financial statement auditing process in Iran has lead to probable manager's fraud detecting at most in 6/3 percent of cases. This condition indicates that financial statement auditing process that is related to the manager's fraud detecting is not sufficiently effective.

According to the preface to the Iranian Accounting Standards, the range of the application of the accounting standards is related to the preparation of the financial standards with the public aim of providing useful information about the financial situation, financial performance and flexibility of the business units for various decision makers (Iranian Accounting Standards, 2010: 5) The purpose of this study is t find an answer for the question: Whether there is a significant difference between the points of view of the university academics and practitioners with respect to public promulgation of accounting standards of the universities. Research This Research is a survey study. The population of the study consists of 40 professors, M.A. and Ph.D. students of accounting at Shiraz University, 30 top financial managers of Shiraz University and 35 top financial managers of Shiraz Medical Sciences University. The information was obtained via a questioner. The validity of the questioner was tested with the "face validity" approach; its reliability was tested based upon the "Cronbach's Alpha". The reported Cronbach's Alpha was 90.2; thus, the questioner was a suitable means for gathering information. T-Test and ANOVA were employed as relevant statistical tools and they were processed with SPPSS-16 and Excel 2007. Research Hypotheses: Given the objective of this study, the following hypotheses were developed: There is a significant difference between the viewpoints of the accounting academics and practitioners with respect to the implementation of the public sector accounting standards of the universities. There is a significant difference between the viewpoints of the accounting academics and practitioners with respect to the suitability of the accounting reporting in the universities. There is a significant difference between the viewpoints of the accounting academics and practitioners with respect to the suitability of the responsibility function. There is a significant difference between the viewpoints of the accounting academics and practitioners with respect to the improvements of the decision making models of public sector accounting. There is a significant difference between the viewpoints of the accounting academics and practitioners with respect to the promulgation of the auditing standards for the universities. There is a significant difference between the viewpoints of the accounting academics and practitioners of the Shiraz University and the practitioners of the Shiraz Medical Science University with respect to the implementation of the public sector accounting standards, suitability of the accounting reporting, suitability of the responsibility function, improvements of the decision making models of public sector accounting, promulgation of the auditing standards. The results of this study showed that there was no significant difference between the viewpoints of accounting academics and practitioners, for the first and third hypothesis. However, for the second, fourth and fifth hypothesis, the differences between viewpoints was significant. Also, there was no significant difference between the viewpoints of accounting academics and practitioners of the Shiraz University and the practitioners of the Shiraz Medical Science University for the sixth hypothesis. Accounting academics and practitioners of Shiraz University as well as practitioners of Shiraz Medical Sciences University demand that special accounting and auditing standards be promulgated. Hence, it is suggested that Audit Organization of Iran should attempt to establish relevant public sector accounting and auditing standards. In addition, future accounting researchers could utilize the international accounting and auditing standards in order to recommend relevant public sector accounting and auditing standards for the universities.