The main purpose of this study is to Survey the effect of Internal control systems on the relationship between earnings management and future performance in companies listed on the Tehran Stock Exchange during the years 1393 to 1397. In this research; Profit management as an independent variable, the future performance of the company as a dependent variable and the company's internal control systems (the existence of an internal auditor unit) as a moderator variable. Financial leverage, company size and accrual ratio are also considered as control variables. The statistical sample of the research includes 159 companies that have been selected through the systematic elimination method. The research method is descriptive-correlation with applied approach. The method of collecting information in the theoretical foundations section is from the library method and in the hypothetical testing section is from the financial document documenting method. The statistical method used in this study is multiple correlation and regression method.
The results of the hypothesis test showed that earnings management has an adverse effect on the company's future performance. Also, the internal control system through the existence of an internal auditor reduces the inverse relationship between profit management and the company's future performance.