Accounting and Auditing Studies

Accounting and Auditing Studies

Developing a Model for the Probability of Money Laundering based on Qualitative Characteristics of Financial Reporting.

Document Type : Original Article

Authors
Jamshid lak 1
mohammadreza poorali 2
Reza Fallah 3
Mehdi Maranjori 4
1 Ph. D. Student of Accounting, Department of Accounting, Chalous Beranch, Islamic Azad University, Chalous, Iran
2 Associate Prof . of Accounting, Department of Accounting, Chalous Branch , Islamic Azad University,chalous, Iran
3 Assistant Prof. of Accounting , Department of Accounting, Chalous Beranch , Islamic Azad University,chalous, Iran
4 Assistant Prof. of Accounting, Department of Accounting, Chalous Beranch , Islamic Azad University,chalous, Iran
10.22034/iaas.2023.179237
Abstract
The purpose of the research: The main purpose of this study is to investigate the effect of financial reporting quality on the probability of money laundering in manufacturing companies listed on the Tehran Stock Exchange
Research Methodology: The method of this research is field (survey) and cross-sectional, and the statistical sample consists of 136 member companies of Tehran Stock Exchange. In this research, to measure the possibility of money laundering, the monitoring instructions of the Tehran Stock Exchange Organization with the title of Checklist for the Evaluation of Anti-Money Laundering and Financing of Terrorism in the Capital Market and other domestic and foreign sources have been used. In this collection, there are three categories of checklists including the following: First category: the law to amend the anti-money laundering law; The second category: the executive regulations of the terrorism financing law and the third category: instructions. To measure the quality of financial reporting, a qualitative and scoring method was used based on quantitative data, similar to Bram and Bissett's research. For this purpose, 32 qualitative indicators were considered to measure the four components of relevance, reliability, comprehensibility, and comparability, and 6 qualitative indicators were considered to examine the limitations of financial reporting.
Research findings: The results of the hypothesis investigation showed that increasing the quality of financial reporting reduces the probability of money laundering. The results of this research also showed that the quality features of financial reporting, including the useful presentation of information with two subsets of comprehensibility and comparability, and the usefulness of information with two subsets of relevance and reliability, all contribute to reducing the probability of money laundering.
Keywords
Money Laundering
Probability of Detecting Money Laundering
Qualitative Feature of Financial Reporting
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Accounting and Auditing Studies
Volume 12, Issue 46
Summer 2023
Pages 5-26