Investigating the conversion of cash accounting to accrual accounting and its effect on the quality of financial reporting

Abstract

The main aim of this study is to investigate the conversion of cash accounting to accrual accounting and its effect on the quality of financial reporting in which the conversion of cash accounting to accrual accounting is considered as an independent variable and the quality of financial reporting as dependent variable with three dimensions such as the accountability of auditors, beneficiary of decisions made by the auditors and ascertaining by the auditors. In this research, the relationship between both variables were investigated and analyzed. The statistical population of this research included the accountants, financial officer, income officer and the staff of Lorestan University of Medical Sciences consisting 170 cases of which 118 ones were selected based on the Cochran formula by means of sampling. The aims of this study were applying and the research method was descriptive-surveying. The data of variables were collected by a questionnaire which its stability (Cronbach's alpha, 0.822) was confirmed. The collected data were analyzed by SPSS. The results from the data analysis were obtained by Kolmogorov – Smirnov test and regression analysis which suggest that conversion of the cash accounting to the accrual accounting effect on the quality of the financial reporting, cash accounting effect on the quality of the financial reporting and accrual accounting effect on the quality of the financial reporting, too.