The relationship between forensic accounting indicators and the quality of financial reporting

Subject Areas : Financial accounting

Mohammad Reza Borna ¹ , Rasoul baradaran Hasanzadeh ² , Alireza Fazlzadeh ³ , Yones badavarnahandi ⁴

1 - University
2 - Associate Professor of Accounting, Faculty of Management, Economic and Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran
3 - Associate Professor, Accounting Department, Faculty of Economics and Management, Tabriz University, Tabriz, Iran.
4 - Associate Professor of Accounting, Faculty of Management, Economic and Accounting, Tabriz Branch, Islamic Azad University, Tabriz, Iran

Received: 2023-10-01 Accepted : 2023-12-10 Published : 2023-11-22

Keywords: Financial Reporting Quality, Fraud, Forensic Accounting, Forensic Accounting Indicators,

Abstract :

Fraud is one of the effective factors in reducing public trust in reports and financial statements prepared by companies. Due to the lack of fraud auditing in Iran's environmental conditions and the lack of acceptance of this responsibility by auditors as the main supervisors of companies' financial information, users are always faced with problems in verifying the validity of financial statements and the quality of financial reporting. In this regard, the present study was conducted with the aim of examining the relationship between court accounting indicators and the quality of financial reporting in the environmental conditions of Iran. The statistical population of the research includes 130 companies that were selected through systematic sampling during the years 2011 to 2022. The quality of financial reporting was measured as a dependent variable using four Jones, modified Jones, Kasznik and Kothari models. Court accounting indicators were evaluated as an independent research variable based on the fraud prediction model of Boarna et al (2022). The results showed; Forensic accounting indicators in Kasznik model have 66% of the power to explain the quality of financial reporting, while in Jones, Kothari and adjusted Jones models, they are equal to 50, 56 and 30%, respectively.