Information Technology Audit by Internal Auditors

Shaban Mohammadi,Ali Mohammadi 한국유통과학회 2016 KODISA ICBE (International Conference on Business Vol.2016 No.-

In this paper, the objective pursued, the first objective is to provide the estimated time that the internal auditors on audit organization's IT(Information Technology) spend. the second objective of this paper is to identify the key variables associated IT audits by internal auditors. because this study is to investigate the use of sophisticated information technologies in order to maintain a competitive advantage and to realize the economic benefits is essential. The staff at various levels of the business units to perform daily activities of their IT systems. In fact, electronic documents are replacing paper documents. In fact, it can be difficult to find companies that at least one of the areas of financial reporting, operational and compliance purposes, they should not use the information. computer information systems and information technology have become an essential component of most organizations. consequently, in cases such as for ensuring that systems are controlled enough, safe enough, and as i mentioned, the act is required for IT audits.

The Limitations of Risk-based Auditing using Fuzzy Methods

Shaban Mohammadi 한국유통과학회 2015 The Journal of Industrial Distribution & Business( Vol.6 No.1

Purpose Investors, creditors, – governments, and others make decisions using reasonable information provided by others. In many cases, the users of this information have goals and objectives conflicting with those of the information’s producers, indicating the need for external auditors. Research design, data, and methodology – Competition in auditing has noticeably intensified globally, especially in developed countries. This means that auditors are striving to increase the efficiency of their methods. In recent years, risk-based auditing has become prominent among these efforts. In risk-assessment auditing, the auditor may directly affect the effectiveness and efficiency of the audit. Results – As a central framework, the risk assessment process improves audit quality and effectiveness such that the audit will lead to necessary changes. Previous studies have shown that risk assessment affects the nature, timing, and content of audit procedures. Conclusions – In the planning stage of an audit, audit risk assessment may identify any inappropriate or inefficient distribution of resources or determine whether the results of an audit will be ineffective or incorrect. Thus, assessing audit risk is a critical task.

Continuous Audits Using Decision Support Systems

Shaban Mohammadi 한국유통과학회 2015 The Journal of Industrial Distribution & Business( Vol.6 No.3

Purpose - This article’s aim is to examine how the utilization of existing and future decision-support systems will lead to a change in the auditing process. Research design, data, and methodology - An information system is a special decision-support system that combines information obtained from various sources and communicates among them to help in assessing appropriate complex financial decisions. This paper analyzes techniques such as data and text mining as components of decision-support systems to be used in the auditing process. Results - We present views about how existing decision-support systems will lead to a change in audits. Auditors, who currently collect significant data manually, will in the future move towards management through complex decision-support systems. Conclusions - Although some internal audit functions are integrated into systems of continuous monitoring, the use of such systems remains limited. Thus, instead of multiple decision-support systems, a unified decision-support system can be deployed for this that includes sensors integrated within a company in different contexts (e.g., production, sales, and accounting) that continually monitors violations of controls, unusual patterns, and unusual transactions.

A Study of the Impact of Accounting Information Quality and Information Asymmetry on Underinvestment in Iran

Shaban Mohammadi,Hamed Esmaeilioghaz 한국유통과학회 2017 The Journal of Industrial Distribution & Business( Vol.8 No.1

Purpose - The main purpose of the current study is to examine the impact of accounting information quality and information asymmetry on the underinvestment phenomenon among the listed companies on the Tehran Stock Exchange (TSE). Research design, data, and methodology - The population includes 94 firms selected through systematic sampling. The data is collected from the audited financial statements of the firms provided by TSE’s website from 2010 to 2015. Accounting information quality and information asymmetry is considered as independent variables, and their impact is examined on the dependent variable (underinvestment). Results - The statistical results, based on data collected from 94 listed companies on the TSE during 2010–2015, revealed positive impact of accounting information quality and positive impact of information asymmetry on underinvestment. There was a significant relationship between accrual quality (AQ) and underinvestment, and spread and underinvestment. The results also showed that information asymmetry is the main factor in the creation underinvestment. Conclusions - Findings of this article can assist accounting researchers and theoreticians in comparing Real world facts with hypotheses developed with respect to accounting information quality, information asymmetry and underinvestment. However, the results of fuzzy regression analysis indicate significant relationships between the independent variable except underinvestment.

Need for internal control of public sector

Shaban Mohammadi 국제융합경영학회 2015 융합경영연구 Vol.3 No.1

Managers are always trying to be the best internal controls in their organizations copper approximate because they know that be effective internal control over previous systems, to fulfill the mission of the organization and minimize unexpected events will be extremely difficult. On the other hand, the existence of internal controls to increase efficiency, reduce head loss, assets and achieving a reasonable assurance of the reliability of financial statements and compliance with laws and regulations will be. Internal control, not an event, but a series of operations and activities on the basis of output. Internal controls help to achieve the goal of minimizing the problems of implementing appropriate internal controls. Internal control is an integral component of corporate governance that will provide reasonable assurance of achieving the organization's objectives. preventing, detecting errors and fraud goes to work. Responsibility for the prevention and detection of fraud and error in the public sector is the responsibility of managers. Managers of internal control and consistently applying appropriate accounting systems, this responsibility will play (Lin et al., 2011) . Since the public sector organizations differ from each other, thus establishing internal controls cant be the same for all organizations and agencies of the public sector. Establish specific controls on each system to factors such as size, type of operation and organizational goals that the system is designed, it depends. On the other hand, rapid advances in information technology, the need to update internal control guidelines in relation to Create a new computer system so as to ensure that the activities of managers and effective control Should be updated if necessary

Depreciation of Non-Temporal Investment

Shaban Mohammadi,Mahmoud Lari Dashtbayaz 한국유통과학회 2015 Asian Journal of Business Environment (AJBE) Vol.5 No.3

Purpose – This paper compares current requirements for depreciation accounting from the Financial Accounting Standards Board in America for equity securities and all debt securities with determinable fair value, and disclosure requirements related to the fair value of securities below registered cost with the requirements of the international Financial Reporting Standards Board and accounting standards committee. Research design, data, and methodology – Mini-review statements are examined relating to depreciation of investments in America and the Financial Accounting Standards depreciation of investments in Iran that meet the requirements of international reporting standards and the Iranian Accounting Standards Committee. Results – Accounting rules for depreciation of investments in securities requires a good deal of judgment. In particular, devaluation decisions during the recession and market crisis were controversial, although even with no clear guidelines on devaluation, sometimes such decisions were simple. Conclusions –Companies can choose from formal policies applied uniformly and documentations of interest to provide a summary of the principles and conclusions obtained through disclosure, enabling market participants to assess the entity's conclusions reasonably, thereby easing investor and market worries.

Auditor's Report and the Impact of Non-Audit Services, Audit Institutions

Shaban Mohammadi,Mahmoud Lari Dashtbayaz 국제융합경영학회 2015 융합경영연구 Vol.3 No.2

In this paper, the effects of auditor change on audit quality in companies accepted in Tehran stock exchange placed review and we assessed the presence or absence of a significant correlation between them. to assess the quality of data auditing and tax distortions, falsification of accounting estimates, distortion of rules, distortion caused by mistakes in applying accounting policies and other distortions are used as the dependent variable Is. the sample group consisted of 56 companies as experimental group and a control group of 56 other companies a 4-year period, during the years 2011 to 2014 were studied. data needed for research discovery success ratio distortion before and after the change of auditor. To test the research hypotheses paired comparison method is used.

Effect of Financial Performance on Earnings Management in the Drug Distribution Industry

Ali Shirzad,Shaban Mohammadi,Ryhaneh Haghighi 한국유통과학회 2015 The Journal of Industrial Distribution & Business( Vol.6 No.4

Purpose To mislead shareholders – about a firm’s actual economic performance, managers frequently manage dividends. Earnings management also affects performance reviews. Managers attempt to manage reported earnings caused by current economic events to accurately reflect their current performance. Research design, data, and methodology – The sample consisted of 312 company-years from companies in the pharmaceutical distribution industry listed on the Tehran Stock Exchange. A study period from 2004 to 2014 was selected. In this study, a model for measuring the performance of the net profits to total assets of a division of Jones was used to measure earnings management. Results – This study found a negative correlation between corporate performance and earnings management. Conclusions – The results for the earnings management company indicated a significant inverse relationship. Therefore, the company’s performance weakened as its earnings management activity increased. In other words, the results showed that the company’s performance-based accruals earnings management, the actual management of profits, and the general level of earnings management had significant inverse relationships. Thus, as the company’s profits declined, earnings management activity increased.

The Relationship between Management bonuses with Earnings stability in Information technology and Computer listed companies on the Tehran Stock Exchange

Reza Moghani,Shaban Mohammadi Mohammadi,Hamed Esmaeilioghaz 국제융합경영학회 2016 융합경영연구 Vol.4 No.4

The purpose of the present study is to investigate the relationship between Management bonuses and earnings stability of the listed companies on the Tehran Stock Exchange (TSE). The population includes 94 firms selected through systematic sampling. The data is collected from the audited financial statements of the firms provided by TSE’s website from 2009 to 2016. The results of multiple linear regression analysis show that there is a significant relationship between Management bonuses and earnings stability. The aim of this study primarily investigating the relationship between earnings stability and management bonus. In the case of this target, the next goal of this research is to develop a proposal for legislation in the domain of capital market, students and faculty as well as accounting information users provide research interests. Observations show many companies despite the decline in profitability, bonus managers to continually pay. Increase in listed companies Stock Exchange as well as the importance of communication between earnings quality and bonus managers in Financial Accounting the authors created an incentive to research about this relationship do. The results of this research could be the development of literature done in the past. Thus, more knowledge about the issue of sustainability and its relation to bonus managers the users of accounting information, accounting courses provide students and faculty.

Capital Market Development: Evidence from the Role of Audit

Mahmoud Lari Dashtbayaz,Shaban Mohammadi 국제융합경영학회 2015 융합경영연구 Vol.3 No.3

Quality auditor and auditors of larger firms have a positive effect on profit is unusual. The auditors smaller negative effect on profit companies profit is unusual. Change to larger audit shows the quality of earnings and to respond more investors positive changes in income and increased costs and reduced profitability is less negative price changes. Similarly, switching to a smaller auditor confirms the low quality of earnings, resulting in a negative response to the market. In this article market reaction (response investors) the quality of the audit and the auditor were studied in the Tehran Stock Exchange. in general, information about companies in capital market accounting to investors and the capital market is considered to be valuable.