The impact on earnings quality audit and internal control weaknesses in companies listed on the Tehran stock exchange

Abstract

Forecast accounting earnings and economic change has long time that has attracted investor’s interest, managers, financial analysts, researchers and creditors. And is counted the most important source of information for investors, creditors and other users, especially on the stock exchange. Therefore, this study examines the impact of earning quality audit and internal control weaknesses in companies listed on the Tehran Stock Exchange. The target population included all companies listed in Tehran Stock Exchange during the period of 2008- 2014, respectively. For statistical analysis used the descriptive statistics and inferential statistics and regression. We used the F index at the error level of 5% and P-Value, for the Significance test of independent variables used the T index 90%, 95% and 99% to evaluate the significance of regression models. The results showed that auditor industry specialization have direct impacts with profit and earnings quality will be increased significantly. Also, the results showed that auditor industry specialization has an impact on earnings quality and as well as weaknesses in internal controls effect on earnings quality and auditor industry specialization, the impact on earnings quality moderated weak internal controls.