Saber Sheri Anaghir Sheri Anaghir; Yahya Hassas Yeganeh; Mehdi Sadidy; Benyamin Narrei
Volume 13, Issue 52 , January 2017, , Pages 9-36
Abstract
Previous researches revealed that corporate governance mechanisms assists the investors in motivating and compelling pillars of company management to more efficient use of corporate resources with doing stewardship duty. Managers can play a critical role in using the resources through making appropriate ...
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Previous researches revealed that corporate governance mechanisms assists the investors in motivating and compelling pillars of company management to more efficient use of corporate resources with doing stewardship duty. Managers can play a critical role in using the resources through making appropriate decisions about optimal investment. Inefficient investment could be the result of poor corporate governance. In other words, corporate governance is a key and monitoring tool in investment efficiency. The purpose of this study is to analyze the relationship between corporate governance and investment efficiency in the firms listed in the Tehran Stock Exchange. For testing hypotheses multivariate linear regression model using estimated generalized least squares method (EGLS) was used. To reach the purpose of the study, a sample of 138 companies were selected by screening (systematic deleting) in the years 2008 to 2014. Based on 93 indicators of hassass yegane and Salimi (2011), we estimated the efficiency of corporate governance and its dimensions such as transparency, effectiveness of board, shareholder rights and the effects of ownership. We also measured the efficiency of investment according to the Richardson’s (2006) model. In general, the results show that corporate governance and its dimensions have a significant positive effect on the efficiency of investment. In addition, a significant and positive impact of variables control such as investment opportunities (Tobin's Q) and firm size on investment efficiency was confirmed. The cash flow had a negative and significant relationship on investment efficiency
Y. Hassas Yeganeh; M. J. Salimi
Volume 8, Issue 30 , July 2010, , Pages 1-35
Abstract
This study investigates for developing a model for corporate governance rating in Iran. We review corporate governance literature and resources and after taking into account social, economic, political and cultural conditions of Iran, the conceptual model and questionnaire was prepared. Based on the ...
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This study investigates for developing a model for corporate governance rating in Iran. We review corporate governance literature and resources and after taking into account social, economic, political and cultural conditions of Iran, the conceptual model and questionnaire was prepared. Based on the developed conceptual model, ownership effects, shareholders right, transparency and board effectiveness were selected as criteria of the model. Every criterion includes some components and every component has some indicators.
The questionnaire was filled by academic and capital market experts and analyzed by AHP and TOPSIS methods and final model was developed. Research findings show that transparency, board effectiveness, shareholders rights and ownership effects orderly have the biggest coefficients in the model. Consistency rate of criteria's and components is also in the acceptable level. (Below 10%)
G. Boulou; Y. Hassas Yeganeh; R. Harasani
Volume 8, Issue 29 , April 2010, , Pages 65-95
Abstract
This paper investigates earnings quality’s trend in Tehran stock exchange listed companies over the period 1380-1387 using a sample of 64 companies in 4 industries. In this paper, earnings quality was measured across 4 dimensions: accruals quality, earnings persistence, earnings predictability ...
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This paper investigates earnings quality’s trend in Tehran stock exchange listed companies over the period 1380-1387 using a sample of 64 companies in 4 industries. In this paper, earnings quality was measured across 4 dimensions: accruals quality, earnings persistence, earnings predictability and smoothness. The results provided no evidence of decline in earnings quality over the sample period. Further statistical analysis showed that the earnings quality data are descriptive of a random walk model. Only regressing the measures of earnings quality on time provided some evidence of slight improvement in accruals quality in one of the industries.
Yahya Hassas Yeganeh; Saber Sheri; H. Khosrownejad
Volume 6, Issue 24 , January 2009, , Pages 79-115
Abstract
In order to solve the distrust problem of the moral hazard in information asymmetry issue in capital markets, corporate governance is introduced. This is an assumption that corporate governance results to a healthful life for organizations in a long horizon and protects the stockholders interests. International ...
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In order to solve the distrust problem of the moral hazard in information asymmetry issue in capital markets, corporate governance is introduced. This is an assumption that corporate governance results to a healthful life for organizations in a long horizon and protects the stockholders interests. International organizations and institutes, suggest the governance codes as a tool to develop the competition ability of corporate to access to the international capital sources, and it also affects economic and employment improvements.
This research studied some of the corporate governance mechanisms in TSE and examines the probable correlation between earning management and corporate governance mechanisms, debt ratio and firm size. The current study employs the cross-sectional modified version of Jones, where abnormal working capital accruals are used as proxy for earnings management. The study reveals that corporate governance mechanisms (board size, proportion of independent directors, competence of independent directors, separation of the roles of CEO and chairman, CEO membership, ownership structure and existence of audit dept.) have non-significant relation with earning management. It also shows that debt ratio and firm size have no significant relation with earning management.
Yahya Hassas Yeganeh; Rasool Heidari
Volume 6, Issue 22 , July 2008, , Pages 23-45
Abstract
According to Agency Theory, when size, debt leverage and salaries of personals is increased, the probability of voluntary choice of qualified auditor will be increased. Therefore, we selected 342 listed companies in Tehran Stock Exchange (TSE).
We examined a selection of qualified auditors when the ...
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According to Agency Theory, when size, debt leverage and salaries of personals is increased, the probability of voluntary choice of qualified auditor will be increased. Therefore, we selected 342 listed companies in Tehran Stock Exchange (TSE).
We examined a selection of qualified auditors when the variable is changed. The result of this research shows no relation between debt and salaries, and selection of qualified auditors. We used De. Angelo (1981) modified Auditing qualified index for the selection of auditors.
Yahya Hassas Yeganeh; Ali Asghar Arab Ahmadi
Volume 5, Issue 19 , October 2007, , Pages 93-114
Abstract
Despite information asymmetry between auditor and client that may result in adverse selection (undesirable client acceptance), auditor should evaluate all phases of audit engagement before establishing any relationship with prospective client. This is due to the fact that, the prospective clients that ...
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Despite information asymmetry between auditor and client that may result in adverse selection (undesirable client acceptance), auditor should evaluate all phases of audit engagement before establishing any relationship with prospective client. This is due to the fact that, the prospective clients that a firm accepts ultimately determine the nature of the firm's evolving client portfolio and as a result they affect the engagement quality. Professional standards state that firms should establish procedures for making the client acceptance decision. However, no guidance is provided about factors that should be considered in making the decision.
Results of this research show that audit firms consider audit risk factors and auditor business risk factors at the time of biding to firm for perform audit services and thus making decision about prospective client. Finding of this study indicate that personnel assignment, as a risk management strategy, affects client acceptance decisions.
Yahya Hassas Ycganeh; Narges Yazdanian
Volume 5, Issue 17 , April 2007, , Pages 151-171
Abstract
This research seeks to find an answer to this quest ion ''how do some corporate governance practices affect earning management in Iran?"
The investigated corporate governance principals in this research are: the percentage of institutional investors' ownership, the existence of non-executive directors ...
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This research seeks to find an answer to this quest ion ''how do some corporate governance practices affect earning management in Iran?"
The investigated corporate governance principals in this research are: the percentage of institutional investors' ownership, the existence of non-executive directors i n the board of directors, the absence (non-existence) of executive directors as the chief or ...... of board of directors, the existence or internal auditors.
In this research Jones modified model has been used to determine earning management which is measured by discretionary accruals. For this purpose, the data of l77 firms during the years 1382 to 1384 have been used. The results of this research show that when the percentage of institutional investors' ownership in firms is more than 45%,the earning management decreases. Moreover the results show that there is no meaningful correlation between the existence of non-executive directors in the board of directors, the absence (non-existence) of executive directors as the chief or ...... of board of d i rectors, the existence of internal auditors and earning management.
Yahya Hassas Yeganeh; Gholamhassan Taghinataj Malakshah
Volume 4, Issue 14 , July 2006, , Pages 133-176
Abstract
The quality of accounting information (including the relevance and the reliability) has effect on capital market efficiency and optimizing decision process. The accounting and auditing education knowledge and profession usually are tried for optimizing the quality.
This study examined demand of the ...
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The quality of accounting information (including the relevance and the reliability) has effect on capital market efficiency and optimizing decision process. The accounting and auditing education knowledge and profession usually are tried for optimizing the quality.
This study examined demand of the users in security exchange market accountants (registered in Tehran Security Exchange Market); (2) Internal auditors (in accepted corporations); (3) Investment Technicians; (4) Accounting students (Ph.D. & MA) in examined group and (5) Accounting students (Ph.D. & MA) in control group.
Conclusion:
The result shows that all of examined groups confirm that:
1) Internal control Reporting is useful for all users of financial information;
2) The report enhances quality of the information;
3) The report should be mandated for accepted corporation in TEHRAN Security Exchange Market;
4) The report is required to auditing by independent auditor.
Yahya Hassas Yeganeh; Ali Jafari
Volume 3, Issue 10 , July 2005, , Pages 103-125
Abstract
Audit quality is one of the fundamental discussions in auditing theory and practice. The goal of this research can be classified in five categories: Fist, identification of significant factors in audited quality through library research of survey. Second, collecting and analyzing identified factors among ...
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Audit quality is one of the fundamental discussions in auditing theory and practice. The goal of this research can be classified in five categories: Fist, identification of significant factors in audited quality through library research of survey. Second, collecting and analyzing identified factors among experts in the field and each factor place in auditing in IACPA by on Delphi survey. Third, analyzing of IACPA's actual audit quality by reviewing audit of financial statements of audited firms. Fourth, comparison of perceived audit quality with actual audit quality. Fifth, suggestion for important of the auditing to certified auditors. The result of the research shows that the seven variable: ( I) specialization (2) efficiency (3) discover of misstatement (4) Regulatory Mechanism (5) conflict of interest (6) Free Market Approach (7) auditor size, arc agreed upon by most experts in the field.
Also assessment of the expert in the research shows that the seven key items that are significant in audit quality are rarely adhered to in auditing by certificated auditors. Analyze of research in auditing reports of the financial statement belonging to 135 companies in the years 1381, 1383 done by IACPA shows that the experts are not efficiency.
Yahya Hassas Yeganeh; Ruhollah Rajabi
Volume 2, Issue 8 , January 2005, , Pages 55-86
Abstract
A wide range of theories and hypotheses positively or normatively have justified the need for presences of audit process as a monitoring body for reassuring financial information provided to the public. There is a consensus that the audit function should be performed in a professional framework. Nowadays ...
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A wide range of theories and hypotheses positively or normatively have justified the need for presences of audit process as a monitoring body for reassuring financial information provided to the public. There is a consensus that the audit function should be performed in a professional framework. Nowadays this function in most countries is performed by audit profession as a society whole agent. Auditors act in the interest of primary stakeholders, whilst having regard to the wider public interest. . Effectiveness of audit function strongly depends on professional power of auditors. Professional power provides auditor the ability to influence clients' behavior regarding financial reporting to comply with Generally Accepted Accounting Standards, otherwise ability to disclose disagreements and other reportable conditions in their audit reports. As a result this ability helps auditors serving public interest. Professional power supports auditor resolving conflicts between them and their clients regarding proper accounting treatment, presentation, disclosure, etc. The main objectives of this research was to recognizing some aspects of professional power of independent audit in Iran, factors affecting professional power and appraisal of audit profession practitioners of factors current situation. Research finding show that professional power affects from wide range of factors and practitioners are not satisfied with current situation of them. Finally based on research findings some suggestions have been made both for application and future researches.
Yahya Hassas Yeganeh; E. Vahidi Elizeei
Volume 2, Issue 7 , October 2004, , Pages 1-31
Abstract
In year 1377, the Auditing organization in Iran issued its Statement of Auditing Standards 40 (SAS 40): "Accounting and Internal Control System and Audit Risk Assessment". The standard identifies inherent risk as one of the three components of audit risk; inherent risk being defined as "the ...
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In year 1377, the Auditing organization in Iran issued its Statement of Auditing Standards 40 (SAS 40): "Accounting and Internal Control System and Audit Risk Assessment". The standard identifies inherent risk as one of the three components of audit risk; inherent risk being defined as "the susceptibility of an account balance or class of transactions to material misstatement". If the inherent risk is low, less substantive testing is required, with possible resultant savings in staff time and audit costs. It is thus beneficial for the audit firms and clients to assess adequately the inherent risk element of an audit assignment to ensure that audits are carried out as efficiently and effectively as possible.
This research project focuses on inherent risk and using a questionnaire survey investigates 143 auditors’ perception of the importance of certain factors which may determine inherent risk. The finding of the study suggests that variables identified in the literature as being closely associated with inherent risk factors are regarded in a similar fashion by auditors; variable such as bonus schemes tied to management earnings, a high turnover rate in top management personnel, a company reputation for taking unusual business risks and history of material errors are believed to be the major determinants of inherent risk. Finally, the evidence revealed that (1) misunderstanding the significance of the risk factor is due to the disregard of various meaning of the words.(2) Auditors had difficulty in distinguishing between inherent risk and control risk factors.
Yahya Hassas Yeganeh; Mohamad Hossein Madanie
Volume 2, Issue 6 , July 2004, , Pages 113-127
Abstract
Credit institutes and banks are one of the most important users of financial statements and auditing reports. In banking system, two main operations are fulfilled: collection of fund and lending.
Decisions making for granting credit in banking system are based specified procedures and ...
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Credit institutes and banks are one of the most important users of financial statements and auditing reports. In banking system, two main operations are fulfilled: collection of fund and lending.
Decisions making for granting credit in banking system are based specified procedures and models in which obtaining financial and auditing report are very important . In Iran , the decisions are not made in an entirely independent and logical spaces on the basis of common credit model as well as bank interests and competition among credit grantors in free market of credits ; because , governmental policies and independent to decide on granting special credits.
This article examine following questions;
What are the effects of auditing reports in their common form on the decisions made by special group of users or the creditors?
The findings of this survey have been collected from 76 questionnaires from decision - makers and authorities of lending in banking system.
Statistical analysis does not indicate a strong and effective relation between auditing report and making decision in credits. But, in case of the stability of other conditions for auditing report will use in decision-making relatively. On the other hand, the behaviors of credit grantors comply with a relative model and predetermined pattern.
Also the type of the personality of credit grantee and type of the loan will affect decisions. While, different credit grantors have an identical attitude regarding the role of independent auditing in decision making from the viewpoint of organizational site, education or work experience.
For effective utilization of independent auditing report, some approaches have been proposed regarding a model of credit granting and in these approaches effective information regarding the information which shall be obtained from the applicants of loans as well as making decision in relation to granting the loan or not and determination of main factors of credits such as the rate of interest, have been collected.
Y. Hasas Yeganeh; P. Roohi
Volume 2, Issue 5 , April 2004, , Pages 157-169
Abstract
In the present socio-economic situation, the independent auditors have taken the responsibility of giving opinion on financial statement. To do this task which entails rendering reliable services to the society, they should work according to legal and professional basics and framework.
This framework ...
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In the present socio-economic situation, the independent auditors have taken the responsibility of giving opinion on financial statement. To do this task which entails rendering reliable services to the society, they should work according to legal and professional basics and framework.
This framework with object of attestation, is named auditing standards.
In this research the awareness of auditors of auditing standards which
Is issued by auditing organization is investigated.
The results of this study reveal that between 75 to 90 present of auditors have sufficient awareness of auditing standards, but the study also provides evidence that the awareness isn't the same for all kind of different auditing standards.
Y. Hassas Yeganeh; S. H. Alavi Tabari
Volume 1, Issue 4 , January 2004, , Pages 71-96
Abstract
There are two readily identifiable areas of a business firm’s operations that require the use of professional auditing services. These areas parallel the organizational forms that the audit services take. In the first area, there is a need for external financial reporting which consists of a set ...
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There are two readily identifiable areas of a business firm’s operations that require the use of professional auditing services. These areas parallel the organizational forms that the audit services take. In the first area, there is a need for external financial reporting which consists of a set of financial accounting statements certified by an outside agent.
Second, there is a need for management information and auditing within the firm beyond the need for an independent financial statement audit.
The main goals of this research are identifying fees for external and internal auditing , recognizing the effect of existence of internal auditing on reducing the auditing expenses of the firm, and studying the effectiveness of raising the management levels whom internal auditors report to in the quality of their work . And eventually the usefulness of internal auditors as substitutes for external auditors.
Bearing in mind the models used in previous researches including the one done by Simunic (1980), another done by Palmrose (1986) to measuring the costs of auditing services, and experimental relation between the costs of internal and external auditing, we contrived a comprehensive model for auditing expenses of the firm, including two simultaneous equations to test our hypotheses against.
The final result of the research indicates that increased amounts of internal audit resources in the firm lower the external audit fee, and internal audit resources which report to the levels in the firm above the controller will exhibit a greater decrease in the external audit fee then internal audit resources which report to the controller, ceteris paribus.
Also the rate of usefulness to external auditors of reports provided by
internal auditors in the firm in which they report to the board of directors and the managing director is similar to that rate for firms in which the auditing division reports to the director for financial and administrative affairs or lower levels of management.
Yahya Hassas Yeganeh; Sara Yaghoobi Manesh
Volume 1, Issue 3 , October 2003, , Pages 27-59
Abstract
The existence of the reliable financial information is necessary for the permanence Eternity of the today world financial (economic) decision making needs to confident and reliable information. The role of the ·auditors is to attest (verify) the financial statements that results in being confident ...
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The existence of the reliable financial information is necessary for the permanence Eternity of the today world financial (economic) decision making needs to confident and reliable information. The role of the ·auditors is to attest (verify) the financial statements that results in being confident and sure about the desirability of the presentation and reliability of the financial statements.
The main goals of this research is study and make conclusion about the auditing functions in attesting to financial statements in Iran and its reflecting on the stock-holders behavior has been Studied. In this paper the effect of the different opinions and qualifications in auditing reports on the stock prices has been assessed. Testing research hypothesis shows that there is a meaningful relation between auditing reports and stock prices.
Yahya Hassas Yeganeh; Hosseyn Kasyri
Volume 1, Issue 2 , July 2003, , Pages 1-38
Abstract
Materiality is one of the comprehensive concepts in accounting and auditing which is used by one definition but different applications. Information is material if its omission or misstatement could influence or change the decisions or Judgments of a reasonable user taken on the basis of financial statements. ...
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Materiality is one of the comprehensive concepts in accounting and auditing which is used by one definition but different applications. Information is material if its omission or misstatement could influence or change the decisions or Judgments of a reasonable user taken on the basis of financial statements. As auditing standards, auditors should consider materiality and its relationship with audit risk when conducting an audit. For materiality Judgment, auditors consider both quantitative and qualitative factors. The objective of this study is: 1) Identify quantitative and qualitative factors effect on auditors' materiality Judgments and its ranking 2) Determine auditors’ consensus in selecting and applying materiality guidelines in audit 3) Identify problems, restrictions and necessity of issuing materiality guidelines in Iran. In this experimental study fifteen quantitative and fifteen qualitative factors which could affect materiality Judgments, selected and examined. The result of this study indicated that: 1) the size of Judgment item, total assets, total revenue and its average, net profit, equity, related items and related class in financial statement identified as significant quantitative factors in Judging materiality level for conducting an audit. 2) The pervasiveness of errors or misstatement to different item in financial statement, relationship of Judgment item with third parties and arm’s length transactions, unusual items, estimated items, departure from laws and regulations and audit risk of Judgment items identified as significant qualitative factors caused in adjusting materiality level. 3) Materiality guidelines based on total assets, total revenue, its average and equity (between 1 to 3 present) and net profit (above 5 percent) are agreed and applied by audit managers. Furthermore, applying net profit guideline together with average total assets and revenue guidelines will improve materiality Judgments. 4) The result indicated the necessity of issuing materiality guideline by profession. Materiality guideline could improve and consistent audit opinions in similar cases, remove problems when auditors changed, consistent the extent of audit work and eventually improve audit efficiency and effectiveness. 5) The results indicated that: a) Few auditors established materiality level in planning stage of audit b) Few auditors considered relationship between audit risk and materiality, especially in adjusting compliance and substantive tests c) In final stage of audit, the auditors do not consider the effect of likely and possible errors in combining the total effect of errors and misstatements.
Yahya Hassas Yeganeh
Volume 1, Issue 1 , April 2003, , Pages 41-60
Abstract
On the basis of "Property Right" Theory, a company is considered as a small group of written or unwritten, formal or informal agreements between beneficiaries and their links: and it is supposed that each person follows his interests and a conflict of interest exists among them. The information inserted ...
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On the basis of "Property Right" Theory, a company is considered as a small group of written or unwritten, formal or informal agreements between beneficiaries and their links: and it is supposed that each person follows his interests and a conflict of interest exists among them. The information inserted in financial report is used in the process of drafting contracts between persons and company. For loan contracts by using ratios, such as the ratio of debt to owners' equity limitations are imposed on managers in transferring wealth from loaners to shareholders. Using accounting income in bonus schemes in order to decrease the conflict of interest between shareholders and management, and in order to prevent managers from leaving is amongst management responsibilities. Finally, using accounting information in political processes such as tax determination, pricing of goods and services, economic decision makings, etc. are samples of accounting information used by loaners, owners and governments. Wealth of persons is also affected by the accounting information prepared by managers. In spite of conflict of interest and effect of accounting information on wealth of mentioned beneficiaries, it is necessary to choose independent auditors for monitoring and attesting this information.
Independent auditors, who are chosen in shareholders general meetings, impartially make a professional comment, by auditing vouchers, documents and evidences supporting financial statements. Independent auditors report accredit accounting information which from the basis of decision makings of beneficiaries.
Researches, done in other countries, show that projected cases in independent auditors reports and specially the explanatory paragraph or paragraphs inserted, are used for company's general meeting decision making in order to decide on adjustments, profit division, managers bonus, etc. Furthermore, mentioned accounting reports are used by government, politicians, stock exchange, credit institutions and banks for different decision makings.
The purpose of this research is to find the answer to the question: "What is the lack of auditors reports effect on company's general meetings decision making and governmental organizations, like ministry of economic and finance, stock exchange and banks caused by?" In order to find the answer to the above question, the research is compiled in the form of seven research hypotheses.
In this research, 46 companies accepted in stock exchange in the period of years 1994 to 1996, are studied and variables extracted from documented evidence are subjected to the research hypotheses.
Conclusion of the research shows that in spite of presence of major shareholders and increasing of share percentage, substantive separation of ownership from management has not been achieved. The lack of substantive separation of ownership from management, lack or weakness of conflict of interest between owner and/or manager and closeness (direct access) of owner to financial information and in some cases support and restrictions of business law have effect on how independent auditor's reports are used in company general meeting decision making. Lack of related laws and provisions cause the manner in which independent auditors report effect decision making of governmental institutions and banks.
Finally, the researcher, on the basis of performed studies and conclusions of this research, has made suggestions on this topic and recommended subjects for future researches.
