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.
G Babajani; D Foroghi
Volume 1, Issue 2 , July 2003, Pages 39-60
Abstract
Social Accounting and corporate social reporting nowadays are considered as one of the important approaches of accounting. In developed and some less developed countries, several studies have been made in relation with this aspect of accounting. In our country, Iran, no scientific study related to corporate ...
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Social Accounting and corporate social reporting nowadays are considered as one of the important approaches of accounting. In developed and some less developed countries, several studies have been made in relation with this aspect of accounting. In our country, Iran, no scientific study related to corporate social reporting in order to establish conceptual framework of this part of accounting have been done so far. This research is an attempt to obtain those mentioned goals. In this research, according to results of Delphi survey, eight important and major factors were recognized as acceptable criteria for promotion of level of social accountability of Iranian enterprises accounting and financial reporting system. Comparing accepted criteria with characteristics of Iranian enterprises accounting and financial reporting system by Delphi group, determined that the above mentioned system lacks expected capability for social accountability.
Ali Saghafi; H Saydi
Volume 1, Issue 2 , July 2003, Pages 61-82
Abstract
In recent decades, the emergence of crisis in accounting has posed by many thinkers and writers, particularly about theory setting and accounting methodology. As it is mostly accepted in philosophy of science, accounting is a type of social science that we should define it by its end, not by its subjects. ...
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In recent decades, the emergence of crisis in accounting has posed by many thinkers and writers, particularly about theory setting and accounting methodology. As it is mostly accepted in philosophy of science, accounting is a type of social science that we should define it by its end, not by its subjects. It is clear that, nowadays the ends and goals of accounting are two major things: preparing useful information for decision making; and accountability. Many evidences and researches show that positive methodology or positive accounting theory is not an appropriate means in achieving to accountability end. Because the focus of positivism is on objective realities; and it misses the role of mind and subjective ideas, accounting as a social science which has built not only on the physical objects but also on the accountants’ thought and power of mind, cannot rely on positive methodology for theory setting, entirely.
This article has tried to emphasize on the importance of the norms. Values and ethics in obtaining the accounting purposes by collecting some philosophic literature, especially the viewpoints of Immanuel Kant in his books based on critique concept and the members of Frankfurt School and their critical theory. Finally, after a review of the ethical approach in accounting theory, we conclude that the nearest way to accounting ends is relying on normative theories, which are described in this text as a stable bridge between the reality of accounting and its ends.
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.
Mohsen Khoshtinat; Mohammad Reza Sarebanha
Volume 1, Issue 2 , July 2003, Pages 107-139
Abstract
There are considerable debates on how dividend policy effects firm value. Some researchers believe that dividends increase shareholder wealth; others believe that dividends are irrelevant, and still others believe that dividends decrease shareholder wealth. The main purpose of this study was to investigate ...
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There are considerable debates on how dividend policy effects firm value. Some researchers believe that dividends increase shareholder wealth; others believe that dividends are irrelevant, and still others believe that dividends decrease shareholder wealth. The main purpose of this study was to investigate the effects of dividend on common stock prices. To test the research hypothesis, the study used the 1994-2002 financial data of a cross - sectional set of companies listed in the Tehran Stock Exchange. The financial data used in the study belonged to a total of 60 corporations who met certain predetermined research criteria. Regression was used to test the research hypothesis. The results show positive correlation between the dividend and common stock prices.
S. H. Sajady; S. M. عضو هیات علمی دانشگاه شهید چمران اهواز
Volume 1, Issue 2 , July 2003, Pages 141-170
Abstract
This research is seen to have been embarked on to specify developmental obstacles in the computer assisted Accounting in Formation Systems (AIS) in productive centers of Kuzistan province. Accordingly, six factors which have been tested as hypothesis regarding the deterring as hypothesis regarding the ...
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This research is seen to have been embarked on to specify developmental obstacles in the computer assisted Accounting in Formation Systems (AIS) in productive centers of Kuzistan province. Accordingly, six factors which have been tested as hypothesis regarding the deterring as hypothesis regarding the deterring constraints in the so - called companies have been inquisitively reviewed. As a result uninformed management lack of awareness with computer system potentialities, unstandardized accounting knowledge of experts. Lack of professional standards in the domain of computer - assisted information systems are detected as serious deterrents to the system in question. But, the high cost of designing information system for accounting is not accounted for to dramatically impede the prospective developments.
