Impact of Internal Control Regulations on the Financial Reporting Quality

Document Type : Original Article

Authors

1 Ph.D. Candidate., Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran.

2 Assistant Prof., Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran.

3 Associate Professor, Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran.

4 Assistant Professor, Department of accounting, Central Tehran Branch Islamic Azad University, Tehran, Iran.

10.30495/ijfma.2024.71137.1955

Abstract

An Effective Internal Control System Features that Demonstrate the Evaluation and Improvement of Existing Internal Control Systems by Highlighting Areas Where the Practical Application of Such Guidelines often Fails in many Organizations. Lack of Organizational Success Leads to the Requirements of Internal Controls to Support the Organization to Achieve its Goals, While Adhering to the Rules and Regulations and Organizational Policies. Hence, in This Study, The Effect of Internal Controls Regulation in order to Prevent the Occurrence of Mistakes and Deviations on the Quality of Financial Reporting.For this purpose, this study was conducted with 90 companies in a period of 12 years from 2007-2018 . In order to evaluate the strength and reliability of the research results from the sensitivity analysis test AND direction investigate the differences between the coefficients for determining a pattern between the two groups before and after the regulation of internal controls , the cramer z-test was conducted at the level of sample companies.The results showed that the regulation of current internal controls has not been able to improve the quality of financial reporting. The results of this study can highlight the need for the competent authorities to pay attention to the review of internal control regulations.

Keywords

References

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