The Effect of the Number of Members of the Board of Directors who are Members of the Society of Certified Accountants on Reducing the Probability of Fraud in Companies with the Moderating Role of Audit Quality

Document Type : Research Paper

Authors

1 Allameh Tabatabai University of Tehran

2 Alvand University, Hamedan

10.22051/jera.2024.47030.3237

Abstract

In the current research, the effect of the number of certified accountants on the board of directors on reducing the probability of fraud in companies with the moderating role of audit quality, in relation to companies admitted to the Tehran Stock Exchange in the period of 2016 to 2018, has been investigated. The statistical population in this research was selected as a sample of 116 companies for a seven-year period, taking into account the criteria and using the systematic elimination method. In order to test research hypotheses, logistic regression model has been used. The findings of the research hypothesis test, using the logistic regression model, show that the number of board members who are members of the chartered accountant community has a negative and significant effect on the probability of fraud in companies. In other words, the higher the number of board members who are members of the public accountant community, the lower the probability of fraud in the company. Also, audit quality as a moderating variable moderates and aggravates the above effect. Therefore, it can be concluded that the more members of the board of directors are members of the community of certified accountants and the company is audited by institutions with Grade A rating, the probability of fraud in companies is greatly reduced.

Keywords

Main Subjects

Empirical Research in Accounting

Articles in Press, Corrected Proof
Available Online from 21 June 2024

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History

  • Receive Date: 28 April 2024
  • Revise Date: 30 May 2024
  • Accept Date: 05 June 2024

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