IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 10 NO. 9 2024
DOI: 10.56201/ijebm.v10.no9.2024.pg97.104

---

The Impact of Audit Quality and Real Profit Management on Risk and Return with the Role of Internal Control Mechanisms

Ghassan Dhahir Ayyal

---

Abstract

In investment decisions, risk and return are two major factors. To enter the market, investors need to ensure the safety of their capital and must identify the factors that affect risk and return (2). There are various factors that can affect return, risk and their changes. On the other hand, in order to enter the capital market and contribute to its growth with their continued presence, investors need to ensure that their capital is immune to losses and to predict investment returns based on reliable and trustworthy information. These goals will only be achieved in circumstances where the factors affecting return, risk and their changes, each of these factors in some way causes an increase or decrease in return and risk; have been identified and presented to shareholders for analysis. This research deals with audit quality, real profit management and internal control as factors affecting risk and return.

---

References:

1- Abaadi, Sajjad; Zad Doosti, Farzaneh. (2019). The relationship between corporate governance,
earnings management and financial performance in companies listed on Tehran Stock Exchange,
Accounting and Management Vision, Volume 26.
2- Etemadi, Hossein; Abdoli, Leila. (2016) Audit quality and fraud in financial statements,
Financial Accounting Knowledge 3.
3- Ansari Samani, Habib; Aminian Dehkordi, Maryam. (2019) Study of the relationship between
information risk and the probability of a price bubble in some economies in companies listed on
Tehran Stock Exchange. 6(2), 63-79.
4- Bakhshi Nejad, Mahmoud. (2018) The effect of financial information transmission on the
impact of abnormal returns on the current corporate strategy accepted in Tehran Stock Exchange.
Accounting Research 1-22.
5- Banabi Al-Qadeem, Rahim; Vaez; Seyyed Ali. (1400). The effect of information risk on the
relationship between abnormal delay of audit report and abnormal stock returns. Accounting
Advances, 12(1), 12-32.
6- Tari Wardi, Yadala; Al-Naimi, Abbas; Rostami, Maryam. (2017) The impact of increasing
earnings management and decreasing earnings management on the quality of financial reporting
of business management, 1(40), 69-86.
7- Jamei, Reza and Niloufar Mohammadi Kalare (2019). Determining the factors affecting audit
quality from the perspective of audit service clients. Journal: Consumer Behavior Studies, 7(1),
202-216.
8- Hosseini, Mr. Rasool; Hajiannejad, Amin; Kanji, Hamid Reza. (1401). Analysis of earnings
management and sustainability in leveraged and non-leveraged companies using Markov chains,
Accounting and Auditing Studies, 92(1), 36-53.
9- Khodadadi, Vali; Veisi, Sajjad; Jaraghi Nia, Ali. (2015) Study of the relationship between audit
quality and capital structure, Accounting Studies 13(1), 45-64.
10- Khoshkar, Farzin; Rafizadeh Boshki, Farhad; Izad Bakhsh, Mohsen. (1401). Real earnings
management methods, accruals, board composition and earnings stability. New research
approaches in management and accounting, 6(85). 36-59.
11- Setayesh, Mohammad Hossein; Sayadi, Lida. (2016). Study of the relationship between excess
free cash flow and earnings management with emphasis on the role of audit quality control,
evidence from Tehran Stock Exchange, Accounting Advances, 9(1), 67-97.
12- Shahnavazi, Abedeh. (2018) The effect of board independence on the relationship between
earnings quality and stock dividends Accounting and Management Perspectives, 2(61), 15-32.
13- Salehi, Allah Karam; Bozorg Mehraban, Shahrokh; Amini, Amin. (2015). Studying the impact
of audit quality on profit stability (A case study of financially distressed companies compared to
other companies in Tehran Stock Exchange). Knowledge of Accounting and Management
Auditing, 5(20), 47-60. 14- Tabatabaei, Seyyed Zahra; Hashemi, Seyyed Abbas; Amiri, Hadi.
(2019). The impact of risk disclosure and its types on the risk of stock price decline. Accounting
Advances, 12(2), 191-229.

DOWNLOAD PDF

---

Back