Examining and explaining the relationship between internal audit and profit sustainability
Subject Areas : Journal of Capital Market Analysis
1 - department of Accounting, Islamic Azad University, Neyshabur Branch, Neyshabur, Iran.
Keywords: internal audit, profit stability, current profit, future profits,
Abstract :
Internal auditing is still an emerging profession. Internal audit plays an important role in helping organizations to achieve their goals and protect their assets (Al-Qudah et al., 2019). In addition, internal audit has become a critical management tool to achieve effective control in organizations (Behren and Ulrich, 2019). The main purpose of this research is to examine and explain the relationship between internal audit and profit stability in companies listed on the Tehran Stock Exchange. Profit stability means the repeatability of current profits. The higher the profit stability, the greater the company's ability to maintain future profits. The period of this research is between 1387 and 1396, which includes two five-year periods, 5 years before the requirement of internal audit and 5 years after that for companies admitted to the Tehran Stock Exchange. which was used by using multivariate regression analysis method using Limer and Hausman's F test with the help of STATA software. In this research, the model of Francis et al. (2005) has been used to measure the stability of profits, and the data of 109 companies have been used to test the hypothesis. has been significant.
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