Accounting and various aspects of finance
AliAkbar Javan; jafar babajani; mohamad marfo; Farokh Barzideh
Abstract
In this study, by using the Fuzzy Delphi research methodology and getting the expert opinions, it was tried to identify indicators for improving audit quality approved by experts in order to design a suitable model for the Economy of IRAN by utilizing a confirmatory factor analysis model. Also in this ...
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In this study, by using the Fuzzy Delphi research methodology and getting the expert opinions, it was tried to identify indicators for improving audit quality approved by experts in order to design a suitable model for the Economy of IRAN by utilizing a confirmatory factor analysis model. Also in this research, the gap between current and desired situation of audit quality indicators in IRAN is investigated. Finally, the dimensions of audit quality are ranked in terms of importance. For this purpose, following the International Auditing and Assurance Standards Board, 60 indicators were identified. These indicators were classified in five dimensions: a. Input factors with 21 indicators; B. Process factors with 10 indicators; C. Output factors with 9 indicators; D. Key interactions with 10 indicators; and E. Contextual factors by 10 indicators. Data were analyzed by utilizing R, Amos and Super Decisions software. The findings indicate that 54 indicators have been adopted, which provide a model for improving the Audit Quality. Also the results of comparing the current and desired situation of audit quality improvement indicators shows a significant difference between the current situation of the audit quality and the desired environment in Iran. Finally, the results of ranking the dimensions affecting the improvement of audit quality Shows that process factors are in the first place of importance from the point of view of experts, input factors are in the second place, main interactions and contextual factors are both in the third place and output factors are in the fourth place. IntroductionThe accuracy of the operation of each component of the financial reporting supply chain leads to higher-quality financial reporting. One of the most important components of this chain is external audits that, by considering the public interests, assure that the financial information presented in financial reports is fair and reliable (IAASB, 2011; Royaei et al., 2015; Imani Barandagh, Mehrani and Hojjat Shamami, 2016). Therefore, the international auditing and assurance standards board (IAASB), using a holistic approach, published a framework for audit quality in which the main factors contributing to audit quality are introduced. Researchers in different countries, including Iran, are expected to pay attention to the indicators suggested by the IAASB and adjust these indicators according to the context in which audit firms operate to help those involved in the financial reporting supply chain, especially auditors, to improve audit quality.Thus, conducting a study aimed at developing a model for audit quality improvement in Iran, considering the indicators suggested by the IAASB to improve audit quality and enhance the position of the auditing profession in Iran.Research Question(s)The present study can answer this question: What is the audit quality improvement model in Iran?Literature Review2.1. Audit quality definition:There is still no comprehensive, worldwide, and consensual definition, and thus, audit quality can be introduced as a complex and multidimensional concept (Mashayekhi et al., 2013; Alavi and Vakili Fard, 2021) that cannot be limited to a simple definition and the opinions of all those involved in the financial reporting supply chain should be taken into account (Bonner, 2008; Knechel et al., 2012; IAASB, 2014; Mohammadrezaei et al., 2019).2.2. Efforts to improve audit quality:Financial crises in recent decades have called into question the auditing profession and audit quality. Therefore, Policymakers have made attempts to identify key indicators of audit quality. As a more considerable step, in 2014, the IAASB developed a framework for audit quality in which the main factors contributing to audit quality were introduced. The IAASB has introduced the main factors contributing to audit quality in this framework and believes that following the framework in the economic environment of each country can lead to high-quality audits and improve the position of the auditing profession in society.MethodologyThe present study is applied research in terms of purpose and descriptive survey in terms of the data collection method. The purpose of this study is to identify the indicators of audit quality improvement in Iran and develop a model for audit quality improvement. To this end, the fuzzy Delphi method and the confirmatory factor analysis (CFA) technique are employed.3.1. Statistical population and sampling methodThe statistical population of this study comprises audit experts (the partners and senior managers of audit firms that are a member of the IACPA and Iran audit organization). The expert panel members were selected using the purposive sampling technique and 80 questionnaires were distributed among the audit experts, and finally, 58 questionnaires were collected to analyze the data.Results4.1. The importance level of the research indicators based on experts’ opinions (the results obtained from the fuzzy Delphi method)According to the obtained results, no indicator is removed, and all the indicators play a role in improving audit quality in Iran and are confirmed by experts. 4.2. Audit quality improvement modelIn the next step, the CFA technique was used to extract the research final model. To this end, first, the first-order one-factor CFA model related to audit quality improvement was fitted, and after removing items with factor loadings less than 0.5, 54 indicators remained. The final research model, which is a model for improving audit quality in the economic environment of Iran, was formed as described in Figure 2. Discussion and ConclusionThis study, using the fuzzy Delphi method and obtaining the opinions of 58 experts, seeks to identify audit quality improvement indicators and design a model suitable for the economic environment of Iran. To this end, based on the theoretical framework, 60 indicators were collected and categorized into five dimensions: a) input factors with 21 indicators, b) process factors with 10 indicators, c) output factors with 9 indicators, d) key interactions within the financial reporting supply chain with 10 indicators, and e) contextual factors with 10 indicators. The results show that 54 out of 60 indicators in five separate dimensions are accepted, which represent the model for audit quality improvement in the economic environment of Iran according to experts’ opinions as described in the aforementioned model (Figure 2).
Accounting tools
Jafar Babajani; Farrokh Barzideh; Vahid Mohammadrezakhani
Abstract
Public Sector Internal Audit, by delivering reliable and consulting services in line with improvement and eliminate challenges can support organizations to achieve goals and provide better services. The purpose of this study is to provide a model for the establishment of internal audit in the public ...
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Public Sector Internal Audit, by delivering reliable and consulting services in line with improvement and eliminate challenges can support organizations to achieve goals and provide better services. The purpose of this study is to provide a model for the establishment of internal audit in the public sector entities in Iran. The approach of the research is based on qualitative method by using fuzzy Delphi model. The statistical population consisted of 85 experts and elites in the internal audit who were selected as the expert group of the research by using non-probability sampling technique. Finally, after the consensus of the experts, we establish the framework internal audit in public sector by considering external environment and our country criteria. This framework can assisting ministers and heads of state agencies in promoting the level of performance and evaluation of financial and operational accountability in addition to growth and improvement of the financial oversight system and the increase of efficiency, effectiveness and economic scale in the public sector.1- IntroductionInternal audit, as a part of the internal control system and one of the important components of corporate governance, plays a significant role in creating added value by improving the quality level of the organization's operations and activities and complying with laws and regulations and their implementation methods.Internal audit is one of the effective tools in the process of realizing and evaluating the level of financial and operational accountability. In this process, the government acts as a respondent and citizens and representatives will play a role as receivers of the answer. In such a system (if such an approach is accepted), the minister or the head of the executive body, in terms of the heavy responsibility he has for accountability, designs and implements appropriate control mechanisms to ensure compliance with laws and regulations. The questions raised in this research can be summarized as follows:Main question 1: What is the pattern of establishing internal audit in government institutions of the public sector of Iran?The purpose of this research is to provide a model for the establishment of internal audit in the government agencies of the public sector of our country.2- Literature ReviewIn a report, the Organization for Economic Cooperation and Development (OECD) (2011) examined the role of internal audit and internal control as a means of strengthening the transparency and accountability of the public sector.Gamayouni (2018) in a research investigated the effect of the efficiency of the internal audit function and the implementation of the accrual-based government accounting standard on the quality of financial reporting. Dunya and Barak (2021) addressed the issue of internal control, a lever for good governance of state-owned companies in Morocco.Rahmani et al. (2014) examined the obstacles to the establishment of internal audit units in public universities in Iran. The obstacles facing the establishment of the internal audit unit are placed in 3 main groups: "Cultural, organizational and legal obstacles", "Lack of recognition, training and proper familiarity" and "Obstacles related to the employees of the internal audit unit".Nikbakht et al. (2016) in a research, analyzed Vera's data with the help of open, central and selective coding method which is specific to grounded theory approach. Moradi and Bahri Terali (2017) studied the factors affecting the effectiveness of internal audit in improving internal controls in banks and state-owned companies.3- Research MethodThe current research is an applied and developmental research. In this research, it seeks to know the existing conditions and help in the decision-making process, so it is classified as a descriptive research, and it also seeks to obtain the opinion of a large statistical community on the subject of the research, so it is a descriptive-survey research.According to the use of the fuzzy Delphi method, the statistical population of the research includes experts based on the three characteristics of "presence of representatives of expert groups", "deep knowledge of the research topic" and "breadth of opinion and knowledge". ", from among expert groups such as auditors. The head of the State Court of Audit, auditors of executive bodies, and directors of audit organizations and academic faculty members of universities who have experience in the field of internal audit using non-probability-chain or network sampling method Barfi) were selected.In this research, first, to identify the dimensions, components and indicators of the internal audit establishment model, the subject literature has been reviewed using the library study method. After identification, the examples of these cases in the public sector of our country were examined based on the opinion of experts. Considering the advantages of the fuzzy Delphi method (29FDM) compared to the traditional Delphi method (30TDM), the fuzzy Delphi method has been used in this research.4- Research findingsIn the data collection phase, 85 questionnaires were completed and presented by 100 members of the expert group. 14.1% of the respondents to the questionnaire questions are in the doctoral level, 77.6% are in the master's level, and 8.2% are in the bachelor's degree. 18.8% of the respondents to the questions of the academic questionnaire, 41.2% were accountants and 40% were auditors of the Court of Accounts.According to the education distribution of the respondents who form the expert group, the obtained results are reliable. In this research, we tried to use the most appropriate group to achieve more accurate results. The reliability of the questionnaire was determined by Cronbach's alpha method. If the obtained alpha coefficient is more than 0.7, it has an acceptable reliability test, which was obtained in this research with a coefficient of 94. Therefore, the questionnaires of this research have good reliability. Based on the results of binomial test for all items, the significance level is less than 0.01. Therefore, at the 99% significance level, the ratio of agreement and disagreement is not the same, and because the ratio of agreement is more than 0.5, the initial agreement of the experts with the items is acceptable. After the binomial test, fuzzy analysis was performed using triangular fuzzy shapes. If this number is greater than 7, it is accepted, otherwise it is rejected.5-DiscussionThe importance of the role of internal audit in public institutions has increased in the last two decades. Internal controls and auditing are considered a desirable function to assist public sector management. Because internal audit plays a fundamental role in maintaining public funds, discovering and preventing abuses and mistakes, and improving methods.6-ConclusionIn this research, an attempt was made to present the model of establishing internal audit in a local way. In this regard, with the help of the fuzzy Delphi method, according to the opinion of experts, dimensions, components and indicators were presented in the form of the mentioned model.
Farrokh Barzideh; Afsane Ghasemi
Abstract
The present study examines the relationship between net operating assets and conservatism. To this end, the data of about 130 firms listed in Tehran Stock Exchange (TSE) from 1386 to 1390 has been collected and statistically analyzed with multiple-variable regression models based on combination data. ...
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The present study examines the relationship between net operating assets and conservatism. To this end, the data of about 130 firms listed in Tehran Stock Exchange (TSE) from 1386 to 1390 has been collected and statistically analyzed with multiple-variable regression models based on combination data. This research uses Givoly and Hayn model to define operating assets and measure conservatism. In this study net operating assets is considered to be the subcategory of net working capital and net non-current operating assets. It was hypothesized that there is the significance relationship between net working capital assets and conservatism and also between net non-current operating assets and conservatism.Findings indicate that there are no significant relationship between net working capital assets and conservatism and also between net non-current operating assets and conservatism. The results also suggest that considering conservatism, there is a significant and negative relationship between leverage, growth and return on assets.
Farrokh Barzideh
Volume 11, Issue 43 , October 2014, , Pages 25-55
Abstract
This research compares regression analysis including cross section regression and pooled regression for test of functional fixation hypothesis. The Comparison of cross section and pooled regression in case of functional fixation hypothesis is done. The comparison includes some statistical measures like ...
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This research compares regression analysis including cross section regression and pooled regression for test of functional fixation hypothesis. The Comparison of cross section and pooled regression in case of functional fixation hypothesis is done. The comparison includes some statistical measures like beta coefficients, F test and T test and model assumptions. The results reveal that in both of univariate and multivariate regressions, the results are same statically point of view for cross section regressions and pooled regressions. Of course numbers of mentioned measures are different but it is not significant statically.
Farokh Barzideh; Mohamad taghi Taghvifard; Fatemeh Zamanian
Volume 10, Issue 39 , October 2013, , Pages 105-124
Abstract
This article is seeking to provide a proper model for selecting portfolio. To do that, first we should studied literature to discover suitable criteria. Then we have used a questionnaire for determining criteria's relationships to rank them. Managers of mutual fund asked to answer this questionnaire. ...
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This article is seeking to provide a proper model for selecting portfolio. To do that, first we should studied literature to discover suitable criteria. Then we have used a questionnaire for determining criteria's relationships to rank them. Managers of mutual fund asked to answer this questionnaire. To determine these relationships, we used DEMATEL technique. After that, these criteria were ranked by using Analytic Network Process. Thus, 50 companies with more cash in market between1385-1389 were chosen to assess these criteria. These companies were ranked by TOPSIS and a portfolio selected with the top 30. Return of portfolio consist of 30 companies had compared with the average return of portfolio consist of 50 stock and was shown by Sharp Index that the proposed model can be useful for managers in their portfolio selection.
F Barzideh; A Shahriari
Volume 9, Issue 34 , July 2012, , Pages 55-75
Abstract
In this paper the functional fixation hypothesis is tested from investors’ viewpoint of net operating assets (bloated balance sheet phenomena). The study is at firm level in Tehran Stock Exchange using the data of 153 firms for 7 years (1382- 1389). The functional fixation hypothesis states that ...
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In this paper the functional fixation hypothesis is tested from investors’ viewpoint of net operating assets (bloated balance sheet phenomena). The study is at firm level in Tehran Stock Exchange using the data of 153 firms for 7 years (1382- 1389). The functional fixation hypothesis states that If investors with limited attention focus on accounting profitability, and neglect information about cash profitability, then net operating assets, the cumulative difference between operating income and free cash flow, measures the extent to which reporting outcomes provoke over-optimism. Our findings from Univariate and Multivariate regressions show that the hypothesis is accepted based on multivariate test and is rejected based on univariate test. These findings show that with control variables consideration bloated balance sheet affect investor decision process in Iran, too.
farokh barzideh
Farokh Barzideh; S.M. Borhani
Volume 6, Issue 23 , October 2008, , Pages 67-88
Abstract
This study presents evidence on the validity of the dividend signaling hypothesis, by using a new testing approach. The main question in this paper is whether dividend is informative about a firm’s future earnings. We examine this issue by investigating the ...
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This study presents evidence on the validity of the dividend signaling hypothesis, by using a new testing approach. The main question in this paper is whether dividend is informative about a firm’s future earnings. We examine this issue by investigating the association between current year stock returns and current and future earning for firms that pay dividends in the current years as compared to firms that do not pay dividends. The analysis of the data reveal that relative to non-dividend paying firms, dividend paying firms have current returns that are more associated with future earning . Overall, our results are consistent with dividends providing relevant information about future earning to the market that this information affect stock price.
Farrokh Barzideh; Sasan Allahgholi
Volume 6, Issue 21 , April 2008, , Pages 83-107
Abstract
This study compares returns from using two different strategies technical analysis and Buy-Hold strategy- of investment in Iranian capital market. For this purpose, we calculate the returns from active strategy arising from Bollinger Bands and Relative Strength Index (RSI) model and compare with ...
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This study compares returns from using two different strategies technical analysis and Buy-Hold strategy- of investment in Iranian capital market. For this purpose, we calculate the returns from active strategy arising from Bollinger Bands and Relative Strength Index (RSI) model and compare with the return from using the Buy-Hold as a passive strategy, for the period of 1376-1386.
Our results show that during of our study period, the returns from active strategy by using Bollinger Bands and Relative Strength Index (RSI) model do not exceed the return from using the Buy-Hold as a passive strategy in the TSE. However, Bollinger Bands and Relative Strength Index (RSI) model has a lower return variance relative to Buy-Hold strategy. Therefore, in point of view of risk, the active strategy is more advantageous than the passive strategy.
Farokh Barzideh; Zahra Nikkhah Bahrami
Volume 5, Issue 18 , July 2007, , Pages 81-104
Abstract
In this article what studied is perceptive the theory model and quality of this relation and assessing the parts of risk for each management assertion. This article states the results of a study there have assessed the relation between inherent risk and control ...
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In this article what studied is perceptive the theory model and quality of this relation and assessing the parts of risk for each management assertion. This article states the results of a study there have assessed the relation between inherent risk and control risk for any existing assertion in any account two hypotheses are made for this research. In order to test hypothesis, survey and normal distribution were the devices of collecting information. The test was done in 5% mean level. The statistical society of this research was the members of formal accountants' society. The results indicate meaningful relationship between inherent risk and control risk. And the auditors didn't distinct for any existing assertion in any account of inherent risk and control risk in their assessments.
Farokh Barzideh; Morteza Moayeri
Volume 4, Issue 16 , January 2007, , Pages 43-69
Abstract
An important qualitative attribute of financial statements is timeliness of their information. The recognition that the length of the audit may be the single most important determinant affecting the timeliness of reporting, has motivated recent research on audit delay. The present study ...
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An important qualitative attribute of financial statements is timeliness of their information. The recognition that the length of the audit may be the single most important determinant affecting the timeliness of reporting, has motivated recent research on audit delay. The present study investigates the determinants of audit delay in Iran. We examine the determinants of "audit delay," the number of calendar days from fiscal year-end to the audit report date. The sample comprises233 companies listed in the Tehran Stock Exchange during the period 1382-1384. Descriptive statistics indicate the average audit delay to be 84 days for the three years under study. Five hypotheses relating audit delay to company size, company profitability, company risk (financial risk), auditor and year-end are tested in this study. Univariate and multivariate analyses and t-test of differences are performed to test the hypotheses of the study. The results for the sample of 233 listed Iranian companies showed that audit delay was significantly related to the companies that have 29 Esfand year-end. Other four hypotheses found not to be significantly associated with audit delay.
Farrokh Barzideh; Saeed Ahmadi Zad
Volume 4, Issue 15 , October 2006, , Pages 43-63
Abstract
At present, following the establishment of the Iranian Association of Certified Public Accounts, the responsibility of expressing opinion on financial statements rests with the independent auditors. This responsibility, which entails rendering reliable services to the society, should be carried out according ...
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At present, following the establishment of the Iranian Association of Certified Public Accounts, the responsibility of expressing opinion on financial statements rests with the independent auditors. This responsibility, which entails rendering reliable services to the society, should be carried out according to pre-determined bases. Such fully thought bases, the objective thereof is to standardize financial reporting, are called Accounting Standards.
The discussion in the present research is whether after several years from the date the Accounting Standards, ratified by Audit Organization, are mandatory the auditors are aware of these standards and the modifications thereto to implement them in the process of audit work or are ignorant of these standards and carry out their work relying on their previous knowledge?
The results of this research show that about 65.5% to 81.9% of auditors have sufficient knowledge of Accounting Standards issue by Audi t Organization but this knowledge in all levels are not the same. Also, the level of auditing society's knowledge of these Accounting Standards is between 62.05% to 67.75%, but varies for different level of seniority and expertise.
Farokh Barzideh
Volume 3, Issue 11 , October 2005, , Pages 157-175
Abstract
In time past many ratios such as current ratio and quick ratio had bee11 used for evaluations of corporation liquidity and ability in debt repayment.
But in recent years because of some deficiency and defection of these two ratios some ...
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In time past many ratios such as current ratio and quick ratio had bee11 used for evaluations of corporation liquidity and ability in debt repayment.
But in recent years because of some deficiency and defection of these two ratios some other ratios such as liquidity index, cash comprehensive liquidity index, net liquidity index, cash conversion cycle, lambda and etc have been presented .
In this essay in addition to presentation of these modem ratios via calculation of modem ratio correlation with traditional ratios, we will discuss to some extent the in formational identify of them. For this reason all active corporation i n cement industry from Tehran exchange have been chosen and ratios for a period of 5 year (1379-1383) have been calculated and the correlation of them have been calculated by SPSS (a software).
The results of this research show that although the modem ratios have a near relationship with traditional ratios but they are some differences that can play an important role on decision and they contain various and more information than traditional ratios and can help users to make their decision better than before.
Hamid Khaleghi Moghoddam; Farokh Barzideh
Volume 1, Issue 2 , July 2003, , Pages 83-106
Abstract
With regard to the goals (efficiency) and objectives (effectiveness) the performance of entities is measured.
Therefore, measuring performance can be considered proper criteria showing the achievement of goals and objectives. This paper enables the firms, all kind to determine how far they have been ...
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With regard to the goals (efficiency) and objectives (effectiveness) the performance of entities is measured.
Therefore, measuring performance can be considered proper criteria showing the achievement of goals and objectives. This paper enables the firms, all kind to determine how far they have been successful (in achieving the goals and objectives). During the last decades the firms have used different approaches and technics in measuring the performances. But, a very few of them are satisfied with the effectiveness of the process of assessments.
This article tries to compare the results of other approaches with the aim of enabling the users of financial statements make reasonable decisions; it deserves to note that Tehran stock exchange is looking for a reliable measure for assessing the accounting information.
Also in this paper attempts has been made to show there is no realizable relation between the different approaches in measuring the performance of the companies.
