elahe sadat hosseini; Mozaffar Jamalianpour
Abstract
Since the auditor's information tool is the audit report, the language and wording used in this report are critical. Although the auditor's report has improved over time, it still suffers from problems. Therefore, audit reports must be prepared carefully to reduce misconceptions as much as possible. ...
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Since the auditor's information tool is the audit report, the language and wording used in this report are critical. Although the auditor's report has improved over time, it still suffers from problems. Therefore, audit reports must be prepared carefully to reduce misconceptions as much as possible. In the present study, the effect of earnings management on the tone and complexity of the auditor's reports has been investigated. After prior research and hypothesis development, 135 companies listed with the Tehran Stock Exchange during the years 1396 and 1397 were selected and tested using ordinary least squares regression. The results indicate a significant negative relationship between accrued earnings management and the positive tone of the auditor's report. The findings also show a significant positive relationship between earnings management and reporting complexity. In addition to expressing the importance and application of this issue for auditors, text mining of audit reports can also help policymakers and developers of reporting standards recognize the expectations gap and take steps to reduce this gap by providing readable audit reports. In addition, it helps to broaden people's understanding of the effects of using qualitative information, such as reporting language, in financial and auditing reports. Also, it shows the relationship between the tone of the auditor's report that is influenced by strategic choice and the use of qualitative disclosure is closely related to the company's performance.
sobhan zafari; darioush foroughi; gholamhossein kiani
Abstract
The emergence of an accrual basis in the preparation of financial statements and the measurement of Accounting Earnings has led to the creation of quantitative, empirical and substantive research into the Earning Quality. Despite the extensive and contradictory research on the quality of earnings in ...
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The emergence of an accrual basis in the preparation of financial statements and the measurement of Accounting Earnings has led to the creation of quantitative, empirical and substantive research into the Earning Quality. Despite the extensive and contradictory research on the quality of earnings in the capital market, the issue of earning quality is still one of the most important issues of interest to market researchers. Some earnings research of the last decade has tended to use a qualitative approach such as text mining to provide a new measure of earnings quality. Therefore, the purpose of the present study is to investigate the impact of comparability and consistency of accounting practice on earnings quality with emphasis on qualitative text mining approach in order to provide a valid qualitative measure for evaluate earnings quality.The statistical population of the research is the companies listed in Tehran Stock Exchange .The study sample consisted of 90 companies in the period 2012-2109. was used Multivariate regression analysis to test the research hypotheses. Earnings quality in the present study was measured based on the quality of the company's accruals. Also, text mining technique (vector space model) was used to measure the consistency of accounting procedures. The results and findings of the study show that accounting comparability has a positive effect on earnings quality. The research findings and findings also confirm that by increasing the accounting consistency, the quality of the firm's earnings also increases. Key-words: accounting comparability,accounting consistency,Accrual Quality,text-mining,earning quality
