the Impact of Internal Control Weaknesses on Financial Reporting Risk Considering The role of mediator of auditor related and unrelated risks
Subject Areas : Financial Economicsمحسن اژدر 1 , محسن دستگیر 2 * , سعید علی احمدی 3
1 - دانشجوی دکتری حسابداری، دانشگاه آزاداسلامی، واحد اصفهان )خوراسگان(، اصفهان، ایران
2 - استاد حسابداری، دانشگاه آزاداسلامی، واحد اصفهان (خوراسگان)، اصفهان، ایران
3 - استادیار حسابداری، دانشگاه آزاداسلامی، واحد اصفهان )خوراسگان(، اصفهان، ایران
Keywords: Internal control weaknesses, financial reporting risk, auditor-related risks, auditor-unrelated risks.,
Abstract :
The purpose of this research is to investigate the impact of internal control weaknesses on financial reporting risk by considering the mediating role of auditor related and unrelated risks. This research is descriptive correlational in terms of practical purpose and in terms of data collection method. The statistical population of this research consists of investors and stock market activists in Tehran Stock Exchange, among whom 260 people were randomly selected in 2020. The data required to test the research hypotheses have been collected through a questionnaire and have been tested using the path analysis technique and through Lisrel software. The results of the research hypotheses test show that internal control weaknesses have a positive and significant effect on financial reporting risk. In addition, information risk as a risk related to the auditor and operational risks and recognition (familiarity) as risks not related to the auditor do not have a significant effect on increasing the severity of the effect of internal control weaknesses on financial reporting risk. This is while the verifiability risk as a risk related to the auditor and the risk of modification (adjustment) as a risk not related to the auditor lead to an increase in the severity of the effect of internal control weaknesses on financial reporting risk.