Investigating of the relationship between the audit committee activities and the quality of the internal control system in the firms acceptedin Tehran Stock Exchange

Document Type : Original Article

Authors
Elaheh Amiri 1
Zohreh Hajiha 2
1 Master of Auditing, Accounting Department, East Tehran Branch, Tehran, Iran
2 Associate professor, Accounting Department, East Tehran Branch, Tehran, Iran (Corresponding Author)
Abstract
The control of financial reporting and reporting of important weaknesses of internal control according to Tehran Stock Exchange ascertain and the design of an effective internal control system to promote micro and macro goals of the company is important.In this research, the relationship between the activities of the audit committee and the quality of the internal control system in the companies admitted in the Tehran Stock Exchange has been investigated.The present research based on its purpose and data collection method was evaluated as a semi-experimental research.In order to analyze the data, the regression technique with panel data was carried out during 1391–1395.Eviews program was used and the statistical society of the research was all the companies admitted in the Tehran Stock Exchange.The results of the research showed in a 95% confidence level, there is a significant relationship between the size of the audit committee and the type of audit institution with the quality of internal control.Also, the number of audit committee members has a significant relationship with the quality of internal control (weakness in the general level) and, finally, the type of audit institution could adjust the relationship between the activities of the audit committee (the number of members of the audit committee) and the quality of internal control (weakness in the general level and weakness in the level earnings).According to the results obtained from the hypothesis test, it can be concluded that the size of the audit committee and the type of audit firm were effective on the quality of internal control, however, considering the number of members of the audit committee, this effect has not been effective in internal control criteria and indicators.Therefore, it is suggested that the number of members of the audit committee be increased and more stringent rules should be adopted in order to oblige all companies to have an audit committee.
 
Keywords
Audit committee activities
type of audit institution and internal control quality
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