Document Type : Research Paper

Authors

• Aso Bahrami ¹
• Iraj Noravesh ²
• abbas Raad ³
• ata mohamadi molqarani ⁴

¹ Department of Accounting, Sanandaj Branch, Islamic Azad University, Sanandaj, Iran

² Tehran University

³ Shaheid Beheshti University

⁴ Assistant Professor, Faculty of Humanities, Islamic Azad University, Sanandaj, Iran

Abstract

The overall purpose of publishing financial statements is to provide information about financial status, performance results, and cash flows to stakeholders. Users' trust, especially investors, shareholders, and creditors, with the information in these statements is an incentive that leads one to fraud in financial reporting. The purpose of present research is to predict fraud in fraudulent financial statements fraud. This triangle is based on the assumption that one is motivated to commit fraud when there are three elements of fraud. These three elements are 1. some perceived motivations for fraud, 2. some opportunities for fraud, and 3. methods of reasoning that fraud does not harm the value of the perpetrator (Cressey, 1973). In this study, the dependent variable of financial statement fraud is used by the researcher as a substitute for earnings management (profit). Independent variables include the pressure of financial stability, the greed of the perpetrator, ineffective supervision, effective supervision, the pressure of external expectations, and predicted financial goals. The statistical population of the study is listed companies in Tehran Stock Exchange and the statistical sample of 98 companies is selected through systematic elimination method during the years 2012 - 2018. The results of testing the research hypotheses using multivariate regression model and panel data model showed that the pressure of financial stability has a significant relationship with financial statements Fraud.

Keywords

• Fraudulent financial statements
• Theory of fraud triangle
• Earnings management