The effect of audit financial statements components on prevention and detection of fraud

A. Feizizadeh

A. Feizizadeh Islamic Azad University, Tehran North Branch, Iran

Keywords: Auditing, Financial Statements, prevention and detection of fraud, Iranian Audit Organization.

Abstract

This is an analysis of the audit factors of the financial statements on prevention and detection of fraud. The present study is a type of applied research and correlation. The samples are 140 expert managers of the audit organization who were selected using the Cochran formula. In the process of gathering information, the researcher carried out a questionnaire that the experts, through the CVI-CVR indicators, approved with a validity equal to 0.87 and 0.99, and approved their reliability equivalent to 0.79, which indicates the convenience of the questionnaire. To analyze the data, the Kolmogorov-Smirnov and Wilk Shapiro tests were applied to analyze the normality of the data, the Pearson coefficient to analyze hypotheses and multiple regression to express the predictive value of the dependent variable using independent variables. All the factors of the financial audit states have a positive effect in the detection and prevention of fraud. In addition, the results of the multiple regression show that among all the factors, the financial transparency factor with a coefficient (0.794) is the most effective factor and the control factor with the coefficient (0.492) is the least important factor,
Therefore, the importance of financial transparency, internal control, professional behavior of the audit, planning and supervision reduces the amount of fraud and avoids financial statements.

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Author Biography

A. Feizizadeh, Islamic Azad University, Tehran North Branch, Iran

Faculty Members of The Islamic Azad University, Tehran North Branch, Iran,

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