Presentation internal control weakness template, Based on control criteria of accounting quality indicators

Document Type : Original Article

Authors
abbas ghaffarighaziani 1
sina kheradyar 2
Mohamad Reza Pourali 3
mahmood samadi 1
1 department of Accounting, Tonkabon Branch, Islamic Azad University, Tonkabon, Iran.
2 department of Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran.
3 department of Accounting, Chaloos Branch, Islamic Azad University, Chaloos, Iran.
Abstract
Internal controls are a process to ensure that objectives such as effectiveness, operational efficiency, reporting reliability and compliance of the organization's activities with applicable laws and the requirements of the legislature are achieved. Operational inefficiency and quality of financial reporting are as negative consequences due to the weakness of internal controls, which are likely to be due to the control criteria of the quality index of accounting information. Therefore, the purpose of this study is to provide a model of weak internal controls based on the control criteria of the quality index of accounting information. To achieve the research goal, data of 87 sample companies were collected over a period of 7 years from 2012 to 2018 and were analyzed by descriptive-correlation analysis with logit regression test. The results showed that there is a significant relationship between disclosure of risk components and weakness of internal controls. There is no significant relationship between corporate governance structure (board independence, institutional ownership) and weak internal controls. There is no significant relationship between operational risk and weak internal controls.
Keywords
internal control weakness
Corporate Governance Structure
operational risk
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