Accounting and Auditing Review | University of Tehran (original) (raw)

Papers by Accounting and Auditing Review

Accounting and Auditing review , 2024

Objective The issue of financing is a significant management topic for entities, with objectives ... more Objective
The issue of financing is a significant management topic for entities, with objectives including investment, profitability, risk reduction, and meeting the company's financial needs. Debt contracts are crucial financial resources for companies. Iranian companies typically use bank facilities or issue debt securities to outsource financing. Since financial statements are an important source of information for providers of financial resources, this research aims to examine the relationship between earnings quality and financing through bank facilities and debt securities and to compare these methods. Additionally, the research investigates the effect of the type of guarantee (bank guarantees compared to other types of guarantees) on the extent of companies' access to resources from issuing debt securities in the capital market.
Methods
The statistical population of this research is the companies listed on the Tehran Securities Exchange and Iran Fara Bourse from 2011 to 2022. To test the first, second, and fourth hypotheses of the research, multiple linear regression was used, and Kramer’s Z test was used to test the third hypothesis.
Results
The results of the research showed that there is a significant positive relationship between the earnings quality and receiving bank facilities and issuing debt securities in the capital market. As a result, by increasing the quality of accounting information and especially earnings quality, the company's access to financial resources from the providers of financial resources increases.
Conclusion
Therefore, company managers are advised to improve the quality of financial reporting and earnings quality to enhance their access to bank financial resources and the issuance of debt securities. Also, the results of Kramer’s Z test showed that the relationship between earnings quality and issuing debt securities is stronger than the relationship between earnings quality and receiving bank facilities. Therefore, it is recommended that the managers of companies who plan to finance through debt securities should focus on improving their financial reporting and earnings quality. This is because the Securities and Exchange Organization places considerable importance on the audited financial statements and the earnings quality at the time of granting the license to issue debt securities. In addition, the results showed that the type of guarantee (use of bank guarantees compared to other guarantees) enhances companies' access to financial resources by issuing debt securities. Therefore, it is recommended that the companies use bank guarantees when issuing debt securities if they have access to banks as guarantors, taking into account the final cost of the debt under these conditions. This is because, based on the results of this research, if bank guarantees are used, the possibility of companies accessing resources from the issuance of debt securities increases.

Accounting and Auditing review , 2024

Objective Inflation accounting plays an essential role in improving the reporting process of busi... more Objective
Inflation accounting plays an essential role in improving the reporting process of business entities facing chronic and double-digit inflation. Addressing this issue requires attention to both the challenges and opportunities associated with inflation accounting.
Consequently, the challenges of using inflationary accounting are significant. However, opportunities for employing inflationary accounting also arise. This research aims to identify the challenges and opportunities of applying inflationary accounting in Iran,
aligning with the implementation of international accounting standards.
Methods
The required data was collected through the distribution of questionnaires among 239 users of financial statements, preparers of financial statements, independent auditors, and academic staff members of universities. The data collection period was during the fall and winter of 2022 and the spring of 2023. Statistical analysis was done using factorial,
exploratory, and confirmatory analysis with the help of AMOS and SPSS software.
Results
Based on the findings, the challenges of using inflation accounting were identified in the
following areas: economic environment and financial reporting, educational and executive issues, audit and assurance issues, and institutional and infrastructure issues. Additionally, opportunities for using inflation accounting in Iran's reporting environment were found in audit and assurance issues, infrastructure and institutional issues, the economic environment and financial reporting, and educational and executive issues.
Conclusion
The application of inflation accounting in educational and executive, audit and assurance, institutional and infrastructural, economic, and financial reporting sectors is facing challenges. Auditing and assurance, institutional and infrastructure, economic and financial reporting, and educational and executive departments represent opportunities for using inflation accounting in Iran. In other words, the application of inflation accounting in Iran faces severe challenges. However, there are more opportunities to use inflation accounting and to adopt and implement it; sufficient measures must be taken to solve these challenges. To apply inflation accounting effectively, it is crucial to consider not only the economic environment, financial reporting, auditing and assurance factors, and institutional and infrastructure aspects but also the training of practitioners and executives. Additionally, the application of inflation accounting, along with the auditing and assurance of financial statements and improvements in the status of reporting units, will enhance the transparency of the economic and financial environment and address educational and executive issues.

Accounting and Auditing Review , 2024

Objective This study aims to uncover the factors influencing the acceptance of integrated reporti... more Objective This study aims to uncover the factors influencing the acceptance of integrated reporting. The goal is to find how attitudes and behavioral intentions of university managers could be positively influenced and how the adoption of integrated reporting can be made easier. Methods To achieve the research goal, a quantitative research design was used. Questionnaires were used to gather the required data. They were filled out by the board of directors' members, including the University president, Vice president of education, Vice president of research and technology, Vice president of finance and administration, Vice president of culture, Vice president of students, and Director of monitoring and evaluation, from 30 leading public universities in Iran. The obtained data were analyzed by fitted structural equations. The criterion used to select the top universities was the most recent ranking listed in the reference database of Islamic World Sciences.

Accounting and Auditing Review , 2024

Objective Auditing is a very important and respected profession that should render precise and qu... more Objective Auditing is a very important and respected profession that should render precise and quality information to win the public's trust in society. This study seeks to develop a model for audit quality considering the components of organizational culture.

Accounting and Auditing Review , 2024

Objective Some major factors influencing investment include the investment risk and the consequen... more Objective Some major factors influencing investment include the investment risk and the consequent cost of capital imposed upon companies. Different studies demonstrated that intra-industry information transfer significantly influences the reporting environment and the quality of financial information. In case intra-industry information transfer within highly connected industries influences investor decisions and disclosure quality, it is expected to affect investor reactions to earnings, perceived risk, and the cost of capital. This study investigates the effect of intra-industry connectedness and diversification of major shareholders' portfolios on the corporate cost of capital, considering the moderating roles of ownership concentration and board gender diversity.

Accounting and Auditing Review , 2024

Objective An investment-making decision is a multifaceted process that requires the investor's pr... more Objective An investment-making decision is a multifaceted process that requires the investor's precision, punctuality, and timely decision. This process is influenced by future expectations and the analysis of several factors the investor must consider to achieve a specific goal. Paralysis in the analysis of these factors causes a delay in obtaining profits or the realization of unwanted losses. Therefore, the main goal of the current study is to investigate the effect of the dimensions of the analysis paralysis on investors' decisions in the Tehran Stock Exchange.

Accounting and Auditing Review , 2024

Objective The geographical conditions of Iran have contributed to the occurrence of diverse natur... more Objective The geographical conditions of Iran have contributed to the occurrence of diverse natural hazards. Among these hazards, drought emerges as one of the most significant, persisting over the Iranian plateau for several years. This study aims to investigate the moderating role of the phenomenon in the relationship between corporate social responsibility (CSR) and financial performance among listed companies in the Tehran Stock Exchange (TSE).

Accounting and Auditing Review , 2024

In recent years, the value of auditing, the role played by auditors, and the quality of communica... more In recent years, the value of auditing, the role played by auditors, and the quality of communication between auditors and the users of their reports, have been criticized. For this reason, significant legislative reforms have been adopted to restore market confidence and strengthen credibility in audit services. Accordingly, to improve the informative value of the auditor reports, the 701 international auditing standard was implemented. Since December 2016, certain criteria have been established to communicate key audit matters to corporate governance stakeholders (management) and to disclose them in the auditor's report. In Iran, this standard was adopted in 2021, and the revisions became effective for auditing financial statements for periods ending on or after March 21, 2022. This paper aims to identify the key audit matters disclosed in the independent auditor's reports during the inaugural year of the implementation of the 701 audit standard. Furthermore, it seeks to analyze the factors influencing the quantity of key audit matters disclosed in the auditor's reports for the fiscal year concluding on March 20, 2023.

Accounting and Auditing Review, 2023

The purpose of this study is to investigate the impact of moral intelligence on the professional ... more The purpose of this study is to investigate the impact of moral intelligence on the professional judgment of auditors. It also seeks to rate the impact of each of the 10 components of ethical intelligence on the judgment of auditors.

Accounting and Auditing Review, 2023

The foundation of accounting knowledge has always been to provide essential information for users... more The foundation of accounting knowledge has always been to provide essential information for users to make informed economic decisions. However, evidence suggests that the standards derived from the current policy-making process prevalent in accounting fail to be notably effective in providing valuable information for decision-making, especially for investors. The primary cause of this inefficiency and ineffectiveness in accounting policy-making stems from the dependence on linear reasoning. The policymaking process in accounting is plagued by an array of contradictions, disorders, repetitions, challenges, and provisional agreements among groups without a logical and unified framework. This research aims to analyze the content of the policy-making process in accounting and present a novel approach to rectify this process and strategically guide it towards fulfilling its objectives in light of the chaos theory. Methods This study adopts a mixed-methods research approach. Initially, content analysis was employed to extract components affecting patterns in the policy-making process. Specialized questionnaires tailored to these identified components were subsequently distributed to gather the opinions of experts. These questionnaires were crafted to evaluate both the prevailing policy-making process in accounting and the decisionmaking behaviors of accounting information users, especially those of investors. The statistical population consists of certified accounting experts, i.e., practicing auditors

Accounting and Auditing Review, 2023

Objective Annual financial and non-financial reports play a crucial role in enhancing public unde... more Objective Annual financial and non-financial reports play a crucial role in enhancing public understanding and facilitating communication with stakeholders. Organizations employ various strategies, including managing the tone and readability of their reports, to shape perceptions among their audience and shareholders. These efforts aim to encourage desirable performance and present a positive image of the organization's performance. Therefore, this study aims to investigate the impact of CEO power on financial reporting readability, considering the moderating role of profitability and corporate governance.

Accounting and Auditing Review, 2023

Objective Considering the importance of sustainability in Islam, Islamic companies can play an im... more Objective Considering the importance of sustainability in Islam, Islamic companies can play an important role in sustainable development by adhering to sustainability requirements and sustainability reporting. In Islam, there are valuable concepts for sustainability. While some authors have explored corporate sustainability reporting from an Islamic perspective, a comprehensive model that incorporates Islamic teachings alongside conventional frameworks is yet to be developed. In this regard, this research aims to present a model for identifying the key elements of corporate sustainability reporting with an emphasis on Islamic principles and values to gauge the Islamic companies sustainability activities disclosure level, including Iranian companies.

Accounting and Auditing Review, 2023

Objective Recent research confirms the view that companies need foreign capital to finance their ... more Objective Recent research confirms the view that companies need foreign capital to finance their labor payments and financing frictions can affect labor investment. Real earnings smoothing can affect labor investment efficiency through its effect on market frictions caused by information asymmetry between managers and suppliers of external capital sources. The purpose of the current research is to investigate the effect of real earnings smoothing and its components on labor investment efficiency.

Accounting and Auditing Review, 2023

In recent years, the volatility of macroeconomic variables and the opacity surrounding the genera... more In recent years, the volatility of macroeconomic variables and the opacity surrounding the general direction of government economic policies have fostered an environment of uncertainty for the country's economic activities. The occurrence of economic policy uncertainty makes it more difficult for companies to secure financial resources, and they may not be able to support high-risk and high-yield investment projects due to a lack of funds. Companies become more risk-averse due to the shock of economic policy uncertainty. This relationship is valid under the criteria of unstable risk and profit volatility, regardless of whether the macroeconomic conditions are favorable or not. The effect of economic policy uncertainty on corporate risk-taking is also affected by product market competition and financial friction. Accordingly, the main purpose of this study is to identify the relationship between economic policy uncertainty and corporate risk-taking with the moderating role of product market competition and financial friction and the mediating role of financialization among the listed companies at the Tehran Stock Exchange. Methods This research is practical in terms of its objective. It employs descriptive-correlational research methodology, utilizing regression and correlation techniques to explore the relationship between variables. Thus, in terms of reasoning, it falls within the realm of inductive research. In this way, in terms of reasoning, it is placed in the group of inductive research. Additionally, this study embodies a positive theory, as conclusions are drawn based on the examination and testing of existing data. To achieve the goal of the research, 142 companies were selected as available samples from 2010 to 2019, and a

Accounting and Auditing Review, 2023

Objective As audit committees are expected to assess the design and implementation of internal co... more Objective As audit committees are expected to assess the design and implementation of internal controls, the challenge of supervising financial reporting controls has become more prominent. This article examines how audit committee members oversee internal controls for financial reporting. The article uses agency theory and institutional theory to explain the role of audit committees as corporate governance monitors. Since there is a gap in the literature on how audit committees perform their supervision of internal controls, this research aims to shed light on the process of audit committee oversight of internal control over financial reporting (ICFR) and seeks to investigate the factors that influence the variation in audit committee internal control over financial reporting oversight.

Accounting and Auditing Review, 2023

Objective: In the present day, companies are not only responsible for enhancing shareholder wealt... more Objective: In the present day, companies are not only responsible for enhancing shareholder wealth but also for placing a significant emphasis on social and environmental considerations. Transparency in non-financial reporting, including Corporate Social Responsibility (CSR), now holds equal importance alongside financial disclosures. The more responsible and ethical a company is regarding social and environmental issues, the less incentive it has to engage in unethical financial practices, such as earnings management. According to the existing literature, corporate governance mechanisms have been created to reduce the representation problem between managers and shareholders. These mechanisms act as a monitoring system to align the managers' interests with the beneficiaries and can lead to reducing the opportunistic behavior of the management. The purpose of this research is to investigate the existence and direction of the relationship between corporate social responsibility (CSR) disclosure and two types of earnings management (real and accrual) based on the opportunistic managerial view and also to study the moderating effect of corporate governance mechanisms on this relationship. Methods: To test and analyze the hypotheses, the panel data of 108 companies from 2016 to 2021 and multivariable regression controlling the fixed effects of year and industry were used. The statistical population of this research includes all the companies admitted to the Tehran Stock Exchange after applying some restrictions. Results: The research findings showed a positive and negative relationship between CSR disclosure and accrual, and real earnings management, respectively. Also, the board of directors' independence and institutional ownership have strengthened and weakened the relationship between CSR disclosure and real, accrual earnings management, respectively. In addition, the results of the reverse causality test confirmed the two-way relationship between CSR disclosure and earnings management. Conclusion: Despite the extensive study of CSR in social science research, the reasons companies engage in CSR activities and spend much capital on it still need to be explained and clarified. This ambiguity can be related to the missing link of earnings management. The results support the research hypotheses and the opportunistic view of management in the Iranian context. For this purpose, the managers used CSR initiatives to manipulate the accrual earnings. However, due to the extensive adverse effects of real earnings management on the company's future performance, managers were less inclined to use this type of earnings management. Also, corporate governance mechanisms have been able to act significantly to moderate these effects. The results of this study carry noteworthy implications for policymakers, managers, and various stakeholders. The findings have significant implications for the stakeholders of different companies, including regulatory authorities, policymakers, developers of the organizational strategy of companies, and academics. Policymakers are advised to reward companies that pursue CSR activities solely for social development while being wary of companies that use CSR activities for covering earnings management. Also, managers can use the results of this research to implement and formulate CSR strategies, which will help them achieve financial transparency when publishing and disclosing the organization's financial information.

Accounting and Auditing Review, 2023

Objective: Creative accounting can be seen as a process that utilizes accounting knowledge to inf... more Objective: Creative accounting can be seen as a process that utilizes accounting knowledge to influence financial indices in information disclosure without violating policies and accounting rules and standards, leading to distortion of the information provided by the managers. This research sought to design and interpretatively evaluate the appearance contexts of creative accounting at the level of capital market companies.

Accounting and Auditing Review, 2023

Objective: In the competitive business landscape, companies seek a distinctive competitive edge b... more Objective: In the competitive business landscape, companies seek a distinctive competitive edge by diverging from conventional industry strategies and embracing alternative methods that prove more advantageous. This departure from traditional approaches is termed strategic deviation in accounting literature. According to this, our study aimed to investigate the relationship between strategic deviation and audit quality. In addition, the consequences of choosing high-quality auditors in firms with strategic deviation were investigated, too. In this research, the consequences of choosing highquality auditors include investigating its effect on earning management, accumulation of capital in the hands of the institutional investors, cost of capital, and market value of listed firms.

Accounting and Auditing Review, 2023

Objective: This research aims to examine the various factors and elements that influence the cogn... more Objective: This research aims to examine the various factors and elements that influence the cognitive dissonance experienced by auditors in their roles and responsibilities, and to propose a model for the development of responsible auditors in Iran. Methods: This study was conducted using a mixed-method approach for analysis. In the qualitative phase, grounded theory was used, while in the quantitative phase, structural equation modeling (SEM) was applied to assess the validity of the conceptual model. Furthermore, this research was carried out during the years 2021 and 2022. The study's statistical population included expert professors, members of the Iranian Association of Certified Public Accountants, senior managers of the Audit Organization, partners of audit firms, tax auditors, judicial experts, financial analysts, and senior managers of creditor organizations. For this purpose, 35 semi-structured interviews were done with the participants based on a composite purposeful sampling technique. Results: The results showed that factors affecting the cognitive dissonance of auditors' responsibilities include irrational expectations and knowledge gap of users (0.394), the unfavorable performance of auditors (0.467), and underlying factors. The latter included a wide range of users (0.270), and a lack of sufficient surveillance over auditors' performance (0.492). Moreover, strategies for convergence between the expectations of auditors and financial reports' users obtained a value of 0.538. In contrast, the value of 0.468 was measured for constant monitoring of professional associations and surveillance institutes over the performance of auditors. Conclusion: According to the achieved results, enforcement power does not exist to reduce negligence and malpractice of auditors and observe the professional conduct act. Moreover, educational centers and universities do not perform effectively to achieve intellectual and academic progress in audit and accounting, so there is a considerable gap between education and practice in accounting. Continuous surveillance over adherence to professional conduct acts by auditors is the main request of financial statement users. Hence, the standard's tone must be changed to increase social interest, help make decisions, and provide information to anticipate coming events and the standard must be formulated based on the environmental conditions and stakeholders' expectations. The establishment of professional associations overseeing the quality of auditing institutions' performance should involve comprehensive software systems, and evaluations conducted by peers should take into account audit quality indicators when ranking these institutions. The novelty of this current study lies in its unique approach of combining qualitative analysis with empirical testing to identify the factors influencing cognitive dissonance among auditors in their roles and to introduce a model for the development of responsible auditors in Iran. This study provides some strategies to match the expectations of financial statements' users and auditors. It can also help professional associations and audit legislators to create expectations convergence.

Accounting and Auditing Review, 2023

Objective: The main purpose of this study is to investigate the behavioral consequences of job bu... more Objective: The main purpose of this study is to investigate the behavioral consequences of job burnout in Iranian accounting and finance faculties with a focus on faculty turnover. Methods: In terms of its purpose, this study falls under the category of applied research, and in terms of its methodology, it is descriptive survey research. To assess occupational burnout, the research employed the Maslach Questionnaire (Fogarty et al., 2016). Turnover intentions were measured using the Kalbers and Fogarty (1995) questionnaire, job satisfaction with the Brayfield and Rothe questionnaire (1951), and organizational commitment was gauged using Meyer and Allen's (1997-1991) questionnaire. Data for the research was obtained through 234 completed questionnaires from faculty members specializing in accounting and financial management in 2022. The analysis was conducted using the structural equation method, and the data was processed with PLS (Partial Least Squares) software. Results: The obtained results showed that job satisfaction is influenced by the depersonalization component. Job burnout, encompassing emotional burnout, reduces personal accomplishment, and depersonalization, and is inversely related to emotional commitment to the organization while exhibiting a positive correlation with the persistence of organizational commitment. The results indicated that burnout components do harm the job performance of accounting and finance faculty members. Furthermore, the findings showed that turnover intentions do not emerge as a consequence of occupational burnout. Instead, job satisfaction emerges as a crucial determinant of turnover intentions among accounting and finance faculty members. The components of emotional commitment and continuity of organizational commitment also have a negative relationship with Turnover Intentions. Finally, emotional commitment to the organization is the reason for increasing job satisfaction. Conclusion: The result of this study shows that occupational burnout in the field of higher education can be an effective factor in reducing job satisfaction and job performance. While the results revealed that burnout in the three emotional dimensions, reduced personal accomplishment, and depersonalization, does not significantly impact the turnover intentions of accounting and finance faculty members, it remains an influential factor on performance and job satisfaction. Additionally, the components of burnout also affect organizational commitment, including emotional commitment and continuity. It seems necessary for the Iranian legislative and relevant authorities in higher education, including the Ministry of Science, Research and Technology and the Islamic Azad University, to use appropriate mechanisms to manage the factors that aggravate job burnout to avoid negative consequences such as job dissatisfaction, leaving the academic profession and avoid bearing replacement costs. Contribution: In the empirical literature, the issue of job burnout and its consequences have not been considered by researchers, and few empirical studies addressed the concept in the auditing profession. Considering the effective contribution of higher education in the preparation and promotion of accounting, finance, and related research fields, neglecting occupational burnout can cause irreparable losses.

Accounting and Auditing review , 2024

Objective The issue of financing is a significant management topic for entities, with objectives ... more Objective
The issue of financing is a significant management topic for entities, with objectives including investment, profitability, risk reduction, and meeting the company's financial needs. Debt contracts are crucial financial resources for companies. Iranian companies typically use bank facilities or issue debt securities to outsource financing. Since financial statements are an important source of information for providers of financial resources, this research aims to examine the relationship between earnings quality and financing through bank facilities and debt securities and to compare these methods. Additionally, the research investigates the effect of the type of guarantee (bank guarantees compared to other types of guarantees) on the extent of companies' access to resources from issuing debt securities in the capital market.
Methods
The statistical population of this research is the companies listed on the Tehran Securities Exchange and Iran Fara Bourse from 2011 to 2022. To test the first, second, and fourth hypotheses of the research, multiple linear regression was used, and Kramer’s Z test was used to test the third hypothesis.
Results
The results of the research showed that there is a significant positive relationship between the earnings quality and receiving bank facilities and issuing debt securities in the capital market. As a result, by increasing the quality of accounting information and especially earnings quality, the company's access to financial resources from the providers of financial resources increases.
Conclusion
Therefore, company managers are advised to improve the quality of financial reporting and earnings quality to enhance their access to bank financial resources and the issuance of debt securities. Also, the results of Kramer’s Z test showed that the relationship between earnings quality and issuing debt securities is stronger than the relationship between earnings quality and receiving bank facilities. Therefore, it is recommended that the managers of companies who plan to finance through debt securities should focus on improving their financial reporting and earnings quality. This is because the Securities and Exchange Organization places considerable importance on the audited financial statements and the earnings quality at the time of granting the license to issue debt securities. In addition, the results showed that the type of guarantee (use of bank guarantees compared to other guarantees) enhances companies' access to financial resources by issuing debt securities. Therefore, it is recommended that the companies use bank guarantees when issuing debt securities if they have access to banks as guarantors, taking into account the final cost of the debt under these conditions. This is because, based on the results of this research, if bank guarantees are used, the possibility of companies accessing resources from the issuance of debt securities increases.

Accounting and Auditing review , 2024

Objective Inflation accounting plays an essential role in improving the reporting process of busi... more Objective
Inflation accounting plays an essential role in improving the reporting process of business entities facing chronic and double-digit inflation. Addressing this issue requires attention to both the challenges and opportunities associated with inflation accounting.
Consequently, the challenges of using inflationary accounting are significant. However, opportunities for employing inflationary accounting also arise. This research aims to identify the challenges and opportunities of applying inflationary accounting in Iran,
aligning with the implementation of international accounting standards.
Methods
The required data was collected through the distribution of questionnaires among 239 users of financial statements, preparers of financial statements, independent auditors, and academic staff members of universities. The data collection period was during the fall and winter of 2022 and the spring of 2023. Statistical analysis was done using factorial,
exploratory, and confirmatory analysis with the help of AMOS and SPSS software.
Results
Based on the findings, the challenges of using inflation accounting were identified in the
following areas: economic environment and financial reporting, educational and executive issues, audit and assurance issues, and institutional and infrastructure issues. Additionally, opportunities for using inflation accounting in Iran's reporting environment were found in audit and assurance issues, infrastructure and institutional issues, the economic environment and financial reporting, and educational and executive issues.
Conclusion
The application of inflation accounting in educational and executive, audit and assurance, institutional and infrastructural, economic, and financial reporting sectors is facing challenges. Auditing and assurance, institutional and infrastructure, economic and financial reporting, and educational and executive departments represent opportunities for using inflation accounting in Iran. In other words, the application of inflation accounting in Iran faces severe challenges. However, there are more opportunities to use inflation accounting and to adopt and implement it; sufficient measures must be taken to solve these challenges. To apply inflation accounting effectively, it is crucial to consider not only the economic environment, financial reporting, auditing and assurance factors, and institutional and infrastructure aspects but also the training of practitioners and executives. Additionally, the application of inflation accounting, along with the auditing and assurance of financial statements and improvements in the status of reporting units, will enhance the transparency of the economic and financial environment and address educational and executive issues.

Accounting and Auditing Review , 2024

Objective This study aims to uncover the factors influencing the acceptance of integrated reporti... more Objective This study aims to uncover the factors influencing the acceptance of integrated reporting. The goal is to find how attitudes and behavioral intentions of university managers could be positively influenced and how the adoption of integrated reporting can be made easier. Methods To achieve the research goal, a quantitative research design was used. Questionnaires were used to gather the required data. They were filled out by the board of directors' members, including the University president, Vice president of education, Vice president of research and technology, Vice president of finance and administration, Vice president of culture, Vice president of students, and Director of monitoring and evaluation, from 30 leading public universities in Iran. The obtained data were analyzed by fitted structural equations. The criterion used to select the top universities was the most recent ranking listed in the reference database of Islamic World Sciences.

Accounting and Auditing Review , 2024

Objective Auditing is a very important and respected profession that should render precise and qu... more Objective Auditing is a very important and respected profession that should render precise and quality information to win the public's trust in society. This study seeks to develop a model for audit quality considering the components of organizational culture.

Accounting and Auditing Review , 2024

Objective Some major factors influencing investment include the investment risk and the consequen... more Objective Some major factors influencing investment include the investment risk and the consequent cost of capital imposed upon companies. Different studies demonstrated that intra-industry information transfer significantly influences the reporting environment and the quality of financial information. In case intra-industry information transfer within highly connected industries influences investor decisions and disclosure quality, it is expected to affect investor reactions to earnings, perceived risk, and the cost of capital. This study investigates the effect of intra-industry connectedness and diversification of major shareholders' portfolios on the corporate cost of capital, considering the moderating roles of ownership concentration and board gender diversity.

Accounting and Auditing Review , 2024

Objective An investment-making decision is a multifaceted process that requires the investor's pr... more Objective An investment-making decision is a multifaceted process that requires the investor's precision, punctuality, and timely decision. This process is influenced by future expectations and the analysis of several factors the investor must consider to achieve a specific goal. Paralysis in the analysis of these factors causes a delay in obtaining profits or the realization of unwanted losses. Therefore, the main goal of the current study is to investigate the effect of the dimensions of the analysis paralysis on investors' decisions in the Tehran Stock Exchange.

Accounting and Auditing Review , 2024

Objective The geographical conditions of Iran have contributed to the occurrence of diverse natur... more Objective The geographical conditions of Iran have contributed to the occurrence of diverse natural hazards. Among these hazards, drought emerges as one of the most significant, persisting over the Iranian plateau for several years. This study aims to investigate the moderating role of the phenomenon in the relationship between corporate social responsibility (CSR) and financial performance among listed companies in the Tehran Stock Exchange (TSE).

Accounting and Auditing Review , 2024

In recent years, the value of auditing, the role played by auditors, and the quality of communica... more In recent years, the value of auditing, the role played by auditors, and the quality of communication between auditors and the users of their reports, have been criticized. For this reason, significant legislative reforms have been adopted to restore market confidence and strengthen credibility in audit services. Accordingly, to improve the informative value of the auditor reports, the 701 international auditing standard was implemented. Since December 2016, certain criteria have been established to communicate key audit matters to corporate governance stakeholders (management) and to disclose them in the auditor's report. In Iran, this standard was adopted in 2021, and the revisions became effective for auditing financial statements for periods ending on or after March 21, 2022. This paper aims to identify the key audit matters disclosed in the independent auditor's reports during the inaugural year of the implementation of the 701 audit standard. Furthermore, it seeks to analyze the factors influencing the quantity of key audit matters disclosed in the auditor's reports for the fiscal year concluding on March 20, 2023.

Accounting and Auditing Review, 2023

The purpose of this study is to investigate the impact of moral intelligence on the professional ... more The purpose of this study is to investigate the impact of moral intelligence on the professional judgment of auditors. It also seeks to rate the impact of each of the 10 components of ethical intelligence on the judgment of auditors.

Accounting and Auditing Review, 2023

The foundation of accounting knowledge has always been to provide essential information for users... more The foundation of accounting knowledge has always been to provide essential information for users to make informed economic decisions. However, evidence suggests that the standards derived from the current policy-making process prevalent in accounting fail to be notably effective in providing valuable information for decision-making, especially for investors. The primary cause of this inefficiency and ineffectiveness in accounting policy-making stems from the dependence on linear reasoning. The policymaking process in accounting is plagued by an array of contradictions, disorders, repetitions, challenges, and provisional agreements among groups without a logical and unified framework. This research aims to analyze the content of the policy-making process in accounting and present a novel approach to rectify this process and strategically guide it towards fulfilling its objectives in light of the chaos theory. Methods This study adopts a mixed-methods research approach. Initially, content analysis was employed to extract components affecting patterns in the policy-making process. Specialized questionnaires tailored to these identified components were subsequently distributed to gather the opinions of experts. These questionnaires were crafted to evaluate both the prevailing policy-making process in accounting and the decisionmaking behaviors of accounting information users, especially those of investors. The statistical population consists of certified accounting experts, i.e., practicing auditors

Accounting and Auditing Review, 2023

Objective Annual financial and non-financial reports play a crucial role in enhancing public unde... more Objective Annual financial and non-financial reports play a crucial role in enhancing public understanding and facilitating communication with stakeholders. Organizations employ various strategies, including managing the tone and readability of their reports, to shape perceptions among their audience and shareholders. These efforts aim to encourage desirable performance and present a positive image of the organization's performance. Therefore, this study aims to investigate the impact of CEO power on financial reporting readability, considering the moderating role of profitability and corporate governance.

Accounting and Auditing Review, 2023

Objective Considering the importance of sustainability in Islam, Islamic companies can play an im... more Objective Considering the importance of sustainability in Islam, Islamic companies can play an important role in sustainable development by adhering to sustainability requirements and sustainability reporting. In Islam, there are valuable concepts for sustainability. While some authors have explored corporate sustainability reporting from an Islamic perspective, a comprehensive model that incorporates Islamic teachings alongside conventional frameworks is yet to be developed. In this regard, this research aims to present a model for identifying the key elements of corporate sustainability reporting with an emphasis on Islamic principles and values to gauge the Islamic companies sustainability activities disclosure level, including Iranian companies.

Accounting and Auditing Review, 2023

Objective Recent research confirms the view that companies need foreign capital to finance their ... more Objective Recent research confirms the view that companies need foreign capital to finance their labor payments and financing frictions can affect labor investment. Real earnings smoothing can affect labor investment efficiency through its effect on market frictions caused by information asymmetry between managers and suppliers of external capital sources. The purpose of the current research is to investigate the effect of real earnings smoothing and its components on labor investment efficiency.

Accounting and Auditing Review, 2023

In recent years, the volatility of macroeconomic variables and the opacity surrounding the genera... more In recent years, the volatility of macroeconomic variables and the opacity surrounding the general direction of government economic policies have fostered an environment of uncertainty for the country's economic activities. The occurrence of economic policy uncertainty makes it more difficult for companies to secure financial resources, and they may not be able to support high-risk and high-yield investment projects due to a lack of funds. Companies become more risk-averse due to the shock of economic policy uncertainty. This relationship is valid under the criteria of unstable risk and profit volatility, regardless of whether the macroeconomic conditions are favorable or not. The effect of economic policy uncertainty on corporate risk-taking is also affected by product market competition and financial friction. Accordingly, the main purpose of this study is to identify the relationship between economic policy uncertainty and corporate risk-taking with the moderating role of product market competition and financial friction and the mediating role of financialization among the listed companies at the Tehran Stock Exchange. Methods This research is practical in terms of its objective. It employs descriptive-correlational research methodology, utilizing regression and correlation techniques to explore the relationship between variables. Thus, in terms of reasoning, it falls within the realm of inductive research. In this way, in terms of reasoning, it is placed in the group of inductive research. Additionally, this study embodies a positive theory, as conclusions are drawn based on the examination and testing of existing data. To achieve the goal of the research, 142 companies were selected as available samples from 2010 to 2019, and a

Accounting and Auditing Review, 2023

Objective As audit committees are expected to assess the design and implementation of internal co... more Objective As audit committees are expected to assess the design and implementation of internal controls, the challenge of supervising financial reporting controls has become more prominent. This article examines how audit committee members oversee internal controls for financial reporting. The article uses agency theory and institutional theory to explain the role of audit committees as corporate governance monitors. Since there is a gap in the literature on how audit committees perform their supervision of internal controls, this research aims to shed light on the process of audit committee oversight of internal control over financial reporting (ICFR) and seeks to investigate the factors that influence the variation in audit committee internal control over financial reporting oversight.

Accounting and Auditing Review, 2023

Objective: In the present day, companies are not only responsible for enhancing shareholder wealt... more Objective: In the present day, companies are not only responsible for enhancing shareholder wealth but also for placing a significant emphasis on social and environmental considerations. Transparency in non-financial reporting, including Corporate Social Responsibility (CSR), now holds equal importance alongside financial disclosures. The more responsible and ethical a company is regarding social and environmental issues, the less incentive it has to engage in unethical financial practices, such as earnings management. According to the existing literature, corporate governance mechanisms have been created to reduce the representation problem between managers and shareholders. These mechanisms act as a monitoring system to align the managers' interests with the beneficiaries and can lead to reducing the opportunistic behavior of the management. The purpose of this research is to investigate the existence and direction of the relationship between corporate social responsibility (CSR) disclosure and two types of earnings management (real and accrual) based on the opportunistic managerial view and also to study the moderating effect of corporate governance mechanisms on this relationship. Methods: To test and analyze the hypotheses, the panel data of 108 companies from 2016 to 2021 and multivariable regression controlling the fixed effects of year and industry were used. The statistical population of this research includes all the companies admitted to the Tehran Stock Exchange after applying some restrictions. Results: The research findings showed a positive and negative relationship between CSR disclosure and accrual, and real earnings management, respectively. Also, the board of directors' independence and institutional ownership have strengthened and weakened the relationship between CSR disclosure and real, accrual earnings management, respectively. In addition, the results of the reverse causality test confirmed the two-way relationship between CSR disclosure and earnings management. Conclusion: Despite the extensive study of CSR in social science research, the reasons companies engage in CSR activities and spend much capital on it still need to be explained and clarified. This ambiguity can be related to the missing link of earnings management. The results support the research hypotheses and the opportunistic view of management in the Iranian context. For this purpose, the managers used CSR initiatives to manipulate the accrual earnings. However, due to the extensive adverse effects of real earnings management on the company's future performance, managers were less inclined to use this type of earnings management. Also, corporate governance mechanisms have been able to act significantly to moderate these effects. The results of this study carry noteworthy implications for policymakers, managers, and various stakeholders. The findings have significant implications for the stakeholders of different companies, including regulatory authorities, policymakers, developers of the organizational strategy of companies, and academics. Policymakers are advised to reward companies that pursue CSR activities solely for social development while being wary of companies that use CSR activities for covering earnings management. Also, managers can use the results of this research to implement and formulate CSR strategies, which will help them achieve financial transparency when publishing and disclosing the organization's financial information.

Accounting and Auditing Review, 2023

Objective: Creative accounting can be seen as a process that utilizes accounting knowledge to inf... more Objective: Creative accounting can be seen as a process that utilizes accounting knowledge to influence financial indices in information disclosure without violating policies and accounting rules and standards, leading to distortion of the information provided by the managers. This research sought to design and interpretatively evaluate the appearance contexts of creative accounting at the level of capital market companies.

Accounting and Auditing Review, 2023

Objective: In the competitive business landscape, companies seek a distinctive competitive edge b... more Objective: In the competitive business landscape, companies seek a distinctive competitive edge by diverging from conventional industry strategies and embracing alternative methods that prove more advantageous. This departure from traditional approaches is termed strategic deviation in accounting literature. According to this, our study aimed to investigate the relationship between strategic deviation and audit quality. In addition, the consequences of choosing high-quality auditors in firms with strategic deviation were investigated, too. In this research, the consequences of choosing highquality auditors include investigating its effect on earning management, accumulation of capital in the hands of the institutional investors, cost of capital, and market value of listed firms.

Accounting and Auditing Review, 2023

Objective: This research aims to examine the various factors and elements that influence the cogn... more Objective: This research aims to examine the various factors and elements that influence the cognitive dissonance experienced by auditors in their roles and responsibilities, and to propose a model for the development of responsible auditors in Iran. Methods: This study was conducted using a mixed-method approach for analysis. In the qualitative phase, grounded theory was used, while in the quantitative phase, structural equation modeling (SEM) was applied to assess the validity of the conceptual model. Furthermore, this research was carried out during the years 2021 and 2022. The study's statistical population included expert professors, members of the Iranian Association of Certified Public Accountants, senior managers of the Audit Organization, partners of audit firms, tax auditors, judicial experts, financial analysts, and senior managers of creditor organizations. For this purpose, 35 semi-structured interviews were done with the participants based on a composite purposeful sampling technique. Results: The results showed that factors affecting the cognitive dissonance of auditors' responsibilities include irrational expectations and knowledge gap of users (0.394), the unfavorable performance of auditors (0.467), and underlying factors. The latter included a wide range of users (0.270), and a lack of sufficient surveillance over auditors' performance (0.492). Moreover, strategies for convergence between the expectations of auditors and financial reports' users obtained a value of 0.538. In contrast, the value of 0.468 was measured for constant monitoring of professional associations and surveillance institutes over the performance of auditors. Conclusion: According to the achieved results, enforcement power does not exist to reduce negligence and malpractice of auditors and observe the professional conduct act. Moreover, educational centers and universities do not perform effectively to achieve intellectual and academic progress in audit and accounting, so there is a considerable gap between education and practice in accounting. Continuous surveillance over adherence to professional conduct acts by auditors is the main request of financial statement users. Hence, the standard's tone must be changed to increase social interest, help make decisions, and provide information to anticipate coming events and the standard must be formulated based on the environmental conditions and stakeholders' expectations. The establishment of professional associations overseeing the quality of auditing institutions' performance should involve comprehensive software systems, and evaluations conducted by peers should take into account audit quality indicators when ranking these institutions. The novelty of this current study lies in its unique approach of combining qualitative analysis with empirical testing to identify the factors influencing cognitive dissonance among auditors in their roles and to introduce a model for the development of responsible auditors in Iran. This study provides some strategies to match the expectations of financial statements' users and auditors. It can also help professional associations and audit legislators to create expectations convergence.

Accounting and Auditing Review, 2023

Objective: The main purpose of this study is to investigate the behavioral consequences of job bu... more Objective: The main purpose of this study is to investigate the behavioral consequences of job burnout in Iranian accounting and finance faculties with a focus on faculty turnover. Methods: In terms of its purpose, this study falls under the category of applied research, and in terms of its methodology, it is descriptive survey research. To assess occupational burnout, the research employed the Maslach Questionnaire (Fogarty et al., 2016). Turnover intentions were measured using the Kalbers and Fogarty (1995) questionnaire, job satisfaction with the Brayfield and Rothe questionnaire (1951), and organizational commitment was gauged using Meyer and Allen's (1997-1991) questionnaire. Data for the research was obtained through 234 completed questionnaires from faculty members specializing in accounting and financial management in 2022. The analysis was conducted using the structural equation method, and the data was processed with PLS (Partial Least Squares) software. Results: The obtained results showed that job satisfaction is influenced by the depersonalization component. Job burnout, encompassing emotional burnout, reduces personal accomplishment, and depersonalization, and is inversely related to emotional commitment to the organization while exhibiting a positive correlation with the persistence of organizational commitment. The results indicated that burnout components do harm the job performance of accounting and finance faculty members. Furthermore, the findings showed that turnover intentions do not emerge as a consequence of occupational burnout. Instead, job satisfaction emerges as a crucial determinant of turnover intentions among accounting and finance faculty members. The components of emotional commitment and continuity of organizational commitment also have a negative relationship with Turnover Intentions. Finally, emotional commitment to the organization is the reason for increasing job satisfaction. Conclusion: The result of this study shows that occupational burnout in the field of higher education can be an effective factor in reducing job satisfaction and job performance. While the results revealed that burnout in the three emotional dimensions, reduced personal accomplishment, and depersonalization, does not significantly impact the turnover intentions of accounting and finance faculty members, it remains an influential factor on performance and job satisfaction. Additionally, the components of burnout also affect organizational commitment, including emotional commitment and continuity. It seems necessary for the Iranian legislative and relevant authorities in higher education, including the Ministry of Science, Research and Technology and the Islamic Azad University, to use appropriate mechanisms to manage the factors that aggravate job burnout to avoid negative consequences such as job dissatisfaction, leaving the academic profession and avoid bearing replacement costs. Contribution: In the empirical literature, the issue of job burnout and its consequences have not been considered by researchers, and few empirical studies addressed the concept in the auditing profession. Considering the effective contribution of higher education in the preparation and promotion of accounting, finance, and related research fields, neglecting occupational burnout can cause irreparable losses.